Why has HSBC Ended its Historic Global Management Scheme?

HSBC has discontinued its long-standing "International Manager Scheme" as part of a wider cost-cutting and restructuring initiative. 

According to a report by the Financial Times, the programme, which was established near HSBC's founding in the late 19th century, has been closed to new applicants. 

The scheme was originally designed to cultivate a pipeline of future leaders for the financial institution with alumni including former CEOs Stuart Gulliver and John Flint.

The decision to end the programme is reportedly part of a broader restructuring plan initiated after Georges Elherdy was appointed CEO in September 2024. 

According to the Financial Times some senior executives considered the scheme outdated. One individual was reported as saying “HSBC employees don’t need this special status,” criticising the “snooty attitude and haughty air” associated with it.

A change in talent development

The International Manager Scheme was created to develop managers who could rotate through HSBC's global network. 

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

The scheme provided participants with benefits such as tax-free pay and housing. 

Its closure could signal a notable change in HSBC's approach to identifying and nurturing its senior leadership talent, moving away from a specialised programme towards a potentially more integrated and equitable system.

Restructuring for greater accountability

Since taking on the CEO role, Georges has implemented major structural changes. He has nearly halved the size of the operating committee and removed co-management roles, which he suggested allowed executives to avoid direct responsibility for their decisions. 

Speaking on Bloomberg’s Leaders with Lacqua programme Georges explained that not enough executives were fully accountable for their business's performance. 

He said: “We moved from 0% single accountability, everything had dual or multiple accountability, to now about 60% of our revenue is generated under single accountability. That’s important.” 

This focus on accountability is a core component of HSBC's new operational strategy.

A new structure for agility and growth

The changes are part of a declared plan to create a more streamlined and responsive organisation. 

In an HSBC press release last year Georges 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.” 

He added: “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.”

Georges joined HSBC in 2005 and became Group Chief Financial Officer in January 2023 before his appointment to CEO. 

When his appointment was announced in July 2024, then-Group Chairman Sir Mark Tucker said: “He is an exceptional leader and banker who cares passionately about HSBC, our customers and our people.

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

George’ leadership is intended to guide HSBC into its next phase of development with these strategic changes in talent and organisational structure being central to that goal.