HSBC Ends Historic Global Management Scheme After 150 Years

HSBC, one of Europe’s largest banks, has stopped its global management scheme named the “International Manager Scheme”, as part of efforts to cut costs, according to the Financial Times.

The scheme was created around the bank’s founding era in the late 19th century to create a pipeline for developing future HSBC bosses, including former CEOs Stuart Gulliver and John Flint, but has been closed to new entrants.

According to the Financial Times, the move was agreed as part of a wider restructuring plan after Georges Elherdy became CEO in September of 2024, succeeding Noel Quinn.

The newspaper reports that some senior executives find the scheme outdated, with one person reportedly saying “HSBC employees don’t need this special status”, criticising the “snooty attitude and haughty air” attached to it.

The International Managers Scheme was designed to develop international managers who can rotate through the bank’s global networks. With this came elite perks, including benefits such as tax-free pay and housing.

HSBC says: “Our International Management Programme offers highly talented employees the chance to pursue an internationally mobile career in a variety of roles and locations.”

HSBC’s restructuring 

Since taking charge of HSBC, Georges has nearly halved the size of its operating committee, getting rid of co-management roles he said allowed bosses to avoid responsibility for their decisions. 

Speaking on Bloomberg’s Leaders with Lacqua programme, Georges said that not enough execs were fully accountable for the performance of their businesses: “We moved from zero percent single accountability, everything had dual or multiple accountability, to now about 60% of our revenue is generated under single accountability. That’s important.”

In a company press release last year, he said: “In October [2024], we set out our plan to create a simpler, more dynamic, agile structure at HSBC.

“We have now completed the next stage of these important changes, which will help us fast forward our plans to execute our strategic priorities.

“The new structure will ensure we can better focus on the businesses where we have clear competitive advantage and the greatest opportunities to grow - and will help us to deliver best-in-class products and service excellence to our customers.”

Who is Georges Elhedery?

Georges joined HSBC in 2005 and was appointed to the Board and as Group Chief Financial Officer in January 2023.

Prior to this, he served as Co-CEO of the Global Banking & Markets, at which time he also led the Markets & Securities Services division.

He also led the Group’s Middle Eastern, North Africa and Turkiye region as CEO from July 2016 to February 2019.

Discussing why he was appointed, during the company announcement in July 2024, HSBC Group Chairman at the time Sir Mark Tucker said: “He is an exceptional leader and banker who cares passionately about the Bank, our customers and our people.

“He has a track record of leading through change, driving growth, delivering simplification, containing costs and bringing a strong focus on execution.”

His appointment was to lead HSBC’s next phase of development and growth, and Georges’ bold strategy is what he hopes will deliver tangible outcomes for the bank.