HSBC 2003 Annual Report Download - page 257

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During the year, aggregate contributions to pension schemes in respect of Directors were US$1,294,964 (2002:
US$1,592,024; 2001: US$1,462,000).
Discretionary bonuses for Directors are based on a combination of individual and corporate performance and are
determined by the Remuneration Committee. The cost of the conditional awards under the Restricted Share Plan
is recognised through an annual charge based on the likely level of vesting of shares, apportioned over the
period of service to which the award relates.
Details of Directors’ remuneration, share options and conditional awards under the Restricted Share Plan are
included in the ‘Report of the Directors’ on pages 208 to 210 and ‘Directors’ Remuneration Report’ on pages
213 to 229.
(d) Auditors’ remuneration
Auditors’ remuneration in relation to statutory audit amounted to US$31.7 million (2002: US$24.8 million;
2001: US$24.3 million). The following remuneration was paid by HSBC companies to HSBC’ s principal
auditor, KPMG Audit Plc and its affiliated firms (‘KPMG’ ):
2003 2002 2001
US$m US$m US$m
Audit services
– Statutory audit ...................................................................................... 30.2 23.5 23.8
–
Audit-related regulatory reporting ...................................................... 6.1 5.6 5.6
Total audit services ................................................................................. 36.3 29.1 29.4
Further assurance services ...................................................................... 6.8 1.3 1.2
Tax services ............................................................................................ 3.3 3.3 2.1
Other services
– Financial information technology ........................................................ –0.1 0.8
– Other services ...................................................................................... 2.5 3.5 3.6
Total other services ................................................................................. 2.5 3.6 4.4
Total fees paid to KPMG ........................................................................ 48.9 37.3 37.1
All services entered into with KPMG after 5 May 2003 were pre-approved by the Group Audit Committee or
were entered into under pre-approval policies established by the Group Audit Committee.
Of fees paid to auditors for non-audit work, US$2.1 million were capitalised (2002: US$0.4 million; 2001:
US$0.4 million).
The following is a description of the type of services included within the categories listed above:
− Audit-related regulatory reporting services include services for assurance and other services that are
reasonably related to the performance of the audit or review of financial statements, including comfort
letters and interim reviews.
− Further assurance services include services for advice on accounting matters, reporting on internal controls
not connected with the financial statements, due diligence work and environmental audits.
− Tax services include services for tax compliance, tax advice and tax planning.
− Other services include other assurance and advisory services such as translation services, review of
financial models and advice on IT security.
In addition to the above, KPMG estimate they have been paid fees of US$12 million by parties other than HSBC
but where HSBC is connected with the contracting party. These fees arise principally in respect of services such
as audit of mutual funds managed by HSBC and reviews of the financial position of corporate borrowers where
HSBC is a lender.