Banking giant HSBC has abandoned plans to freeze pays this year following staff protests barely two weeks after introduction.
At the end of January 2016, the lender had announced plans to freeze pay and hiring in a drive to cut costs and boost profitability. The bank looks to achieve annual cost savings of up to $5bn by 2017.
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HSBC CEO Stuart Gulliver said in a memo that pay rises at the bank will be funded by its 2016 variable bonus pool, originally designed for bonuses to be paid out in 2017. However, the freeze on hiring will remain intact.
"We will therefore proceed with the pay rises as originally proposed by managers as part of the 2015 pay review, noting that, consistent with prior years, not all staff will receive a pay rise," Gulliver said.
Bonuses for 2015 that are expected to be paid in 2016 will not be affected, the memo added.
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