Standard Chartered bankers share $1.37bn bonus pot
Bankers at Standard Chartered have shared a $1.37bn bonus pot for 2021, up 38%, even as it said it was trying to cut fixed costs, in a sign of how banks were returning to bumper payouts after weathering the Covid-19 pandemic in better shape than expected.
London-headquartered Standard Chartered said the payout increase reflected a normalisation of bonuses after a lean 2020, but it also reflected a hot hiring market as lenders worldwide paid up to retain key staff.
The bigger bonus pool came as Standard Chartered set out plans to cut annual expenses by $1.5bn, as part of a broader goal to achieve double-digit returns by 2024, which it outlined on Thursday as it reported annual results.
US banks that reported results last month set the tone for the return of big banker payouts, with Morgan Stanley announcing a 6% increase for its chief executive, James Gorman, and JPMorgan approving a 9% rise for Jamie Dimon, bringing his 2021 total to $34.5m.
Even scandal-hit Credit Suisse, which cut its overall bonus pool in 2021, sweetened senior bankers’ pay with a surge in upfront cash and a one-off bonus.
Standard Chartered said it would increase salaries across the bank by 4.8% in 2022, in common with other lenders under pressure to bolster pay as rising inflation worldwide hits real incomes.
Banks are also stepping up salary increases in south-east Asia. DBS Group, the region’s largest lender, reported a 9% rise in staff expenses to $1.46bn in the second half of last year, and a similar rise for the full year, as its profit rose to a record high last year.
It said it carried out base-salary increments at mid-year when the economic recovery had taken hold.
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