HSBC 2010 Annual Report Download - page 208

HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Directors’ interests / Employees > Disabled persons / Remuneration policy / Employee share plans
206
There have been no other changes in the share
and loan capital interests of the Directors from
31 December 2010 to the date of this Report. Any
subsequent changes up to the last practicable date
before the publication of the Notice of Annual
General Meeting will be set out in the notes to that
Notice.
At 31 December 2010, Directors and Senior
Management (being members of the Group
Management Board) held, in aggregate, beneficial
interests in 13,152,010 HSBC Holdings ordinary
shares (0.07% of the issued ordinary shares).
At 31 December 2010, executive Directors and
Senior Management held, in aggregate, options to
subscribe for 602,019 of HSBC Holdings ordinary
shares under the HSBC Holdings savings-related
share option plans, HSBC Holdings Group Share
Option Plan and HSBC Finance: 1996 Long-Term
Executive Incentive Compensation Plan. These
options are exercisable between 2011 and 2015 at
prices ranging from £3.3116 to £7.9606 and
US$11.8824 to US$18.6226 per ordinary share.
Employees
At 31 December 2010, HSBC employed 307,000
full-time and part-time employees worldwide,
compared with 302,000 at 31 December 2009 and
325,000 at 31 December 2008. The main centres of
employment were the UK with approximately
52,000 employees, India 34,000, Hong Kong 30,000,
the US 27,000, Brazil 24,000, Mexico 20,000,
mainland China 16,000 and France 11,000.
Engaged employees are an important enabler of
a high-performance culture. We encourage managers
to foster open and honest communication and
promote active employee involvement in decision
making. Employment issues and the financial and
economic factors affecting HSBC’s performance are
regularly shared with our employees. An employee
engagement target was included in the 2010
performance objectives of senior managers.
In 2010, we conducted our fourth Group-wide
Global People Survey, which achieved a
participation rate of 90%. The survey gives
employees the opportunity to provide systematic
feedback on their experience of HSBC and
involvement in identifying actions to improve
their experience. While employee engagement fell
3 percentage points from 71% in 2009 to 68% in
2010, this was 6 percentage points higher than the
external global average and 3 percentage points
above the financial services sector average.
Key themes emerging from the 2010 survey
included the strength of our corporate sustainability
effort; those who participate in corporate
sustainability initiatives exhibit higher levels of
engagement. The view that we have a diverse and
fair culture has become stronger. Perceptions of
organisational strategy and vision, reputation and
Group Values all remain above global industry best
in class. In 2011, we aim to improve personal
development and strengthen relationships between
employees and their direct managers by increasing
employee involvement, recognising individual
contribution and demonstrating specific behaviours
which exemplify our Group Values.
Our approach to reward is meritocratic and
market competitive, is underpinned by an ethical
performance culture and aligns the interests of our
employees and shareholders. See Employee share
plans on page 207.
We negotiate with recognised unions. The five
highest concentrations of union membership are in
Argentina, Brazil, mainland China, Malta and
Mexico. It is HSBC’s policy to maintain well-
developed communications and consultation
programmes with unions and there have been no
material disruptions to our operations from labour
disputes during the past five years.
Our deep roots in many geographical regions
and an international mindset inform our perspective
on diversity: ethnicity, age and gender diversity are
areas of strategic focus. We remain committed to
meritocracy, which requires a diverse and inclusive
culture where employees believe that their views are
heard, their concerns are attended to and they work
in an environment where bias, discrimination and
harassment are not tolerated and where advancement
is based on objectivity. Our inclusive culture helps
us to respond to our increasingly diverse global
customer base, while creating and retaining a secure
supply of skilled and committed employees.
In 2010, we increased executive management
sponsorship and responsibility for the promotion
of inclusive working practices. Oversight of
related activities resides with the Group Diversity
Committee, supported by local People / Diversity
Committees.
The role of our Group Values in daily operating
practice has taken on increased significance in the
context of the global financial crisis with changes to
regulatory policy, investor confidence and society’s
view of the role of banks.