HSBC 2001 Annual Report Download - page 151

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A W Jebson is employed on a rolling contract
dated 14 January 2000 which requires 12 months
notice to be given by either party. There are no
provisions for compensation upon early termination
of the contract.
K R Whitson is employed on a rolling contract
dated 1 August 1992 which requires 12 months
notice to be given by either party. There are no
provisions for compensation upon early termination
of the contract.
Members of Senior Management are employed
on service contracts which generally provide for a
term of service expiring at the end of a period of up
to two years, or the individuals sixtieth birthday,
whichever is earlier.
Non-executive Directors are appointed for fixed
terms not exceeding three years, subject to their re-
election by shareholders at the intervening Annual
General Meetings. Non-executive Directors terms
of appointment will expire in 2003  Baroness Dunn
and H Sohmen; and 2004  Lord Butler, R K F
Chien, W K L Fung, S Hintze, Sir John Kemp-
Welch, Lord Marshall, Sir Brian Moffat and Sir
Mark Moody-Stuart. M Murofushi, C E Reichardt
and Sir Adrian Swire will retire at the forthcoming
Annual General Meeting.
Other directorships
Executive Directors, if so authorised by the Board,
may accept appointments as non-executive Directors
of suitable companies which are not part of HSBC.
Executive Directors normally would be permitted to
take on no more than two such appointments. Any
remuneration receivable in respect of these
appointments is paid to the HSBC company by
which the executive Director is employed, unless
otherwise approved by the Remuneration
Committee.
Pensions
With three exceptions (see notes on C F W de
Croisset, D J Flint and W R P Dalton), the executive
Directors are members of defined benefit pension
schemes, having joined HSBC at a time when these
were the norm. There are separate schemes for UK-
based and overseas-based employees; the UK
scheme has a normal retirement age of 60; retirement
ages for overseas schemes vary in accordance with
local legislation and practice.
The pension arrangements for Sir John Bond,
S K Green, A W Jebson and K R Whitson to
contractual retirement age of 60 are provided under
the HSBC Bank (UK) Pension Scheme. The
pensions accrue at a rate of one-thirtieth of
pensionable salary per year of pensionable service in
the United Kingdom. In addition, supplementary
provision is made for S K Green, via an employer
contribution to a personal pension plan, with £1,123
having been made during 2001 (2000: £3,395).
C F W de Croisset is eligible for pension
benefits which are supplementary to those accrued
under the French State and Compulsory
arrangements. The amount of this additional pension,
payable from age 60, currently accrues at the rate of
6,098 per annum for each year of service
(maximum 18 years) as an executive Director of
CCF. The whole cost of this benefit is met by CCF.
The pension arrangements for W R P Dalton to
contractual retirement age of 60 are provided on a
defined benefit basis (details of which are set out in
the table below) under the HSBC Canada Pension
Plan A, at an accrual rate of one-thirtieth of
pensionable salary per year of pensionable service
until his transfer to the UK. Since taking up his
appointment in the UK, he has joined the HSBC
Holdings Overseas (No.1) Pension Plan on a defined
contribution basis, with an employer contribution
during 2001 (including a bonus waiver of £300,000)
of £429,000 (2000: £453,511).
The pension arrangements for D J Flint to
contractual retirement age of 60 are provided
through an executive allowance paid to fund
personal pension arrangements set at 30 per cent of
basic salary. This is supplemented through the
HSBC Holdings plc Funded Unapproved Retirement
Benefits Scheme on a defined contribution basis with
an employer contribution during 2001 of £78,150
(2000: £69,825). The intention of these arrangements
is to provide benefits broadly comparable to an
accrual rate of one-thirtieth of pensionable salary per
year of pensionable service.
The pension arrangements for D G Eldon are
provided under the HSBC International Staff
Retirement Benefits Scheme. Pension accrues at a
rate of one twenty-seventh of pensionable salary per
year of pensionable service.