Editor's Take: HSBC is right to pay better bonuses in Asia

HSBC is taking talent defection in Asia quite seriously these days - it's giving top managers there better bonuses than their UK counterparts.

As we reported in December, the firm bumped up base salaries in Hong Kong last year ahead of new EU bonus rules which it feared would restrict its ability to recruit and retain.

And now HSBC's bonuses are in the spotlight. Globally, its 280 most senior managers, or "code staff", received payouts totalling $374m for 2010 - an average of $1.34m, according to the bank's recently announced results.

However, the average was only $926,882 for its 186 British-based code staff. So why did Asian bankers do better?

First of all, the region contributed the largest proportion (60 per cent) to underlying pre-tax profits. Reward should, in theory, naturally flow to the region which generates the most revenue.

HSBC's report reinforces the importance of Asia several times. Here's a bullet point from the group performance highlights section: "Strong asset growth in commercial banking, particularly in Asia, higher trade-related revenues generally, and expansion of our wealth management business, again most notably in Asia."

But HSBC has a more practical reason for creating a geographical bonus gap. Stuart Gulliver, its chief executive, says it is because recruiting staff is more competitive outside Britain, particularly in Asia, according to a report in The Telegraph.

This is something recruiters and HR people in Hong Kong and Singapore have been saying for several months, while banking boss have largely talked of large-scale Asian hiring and not dwelled on the difficulties of finding the talent. Is this refreshing to hear? Do you work at HSBC? Let us know your thoughts on your bonus.