HSBC 2010 Annual Report Download - page 214

HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Employees > Bank payroll tax // Corporate sustainability > Governance / Risk
212
Emoluments of 5 highest paid senior executives
Employee
1 2 3 4 5
£000 £000 £000 £000 £000
Fixed
Cash based ....................................................... 283 623 421 400 467
Total fixed ........................................................ 283 623 421 400 467
Variable1
Cash ................................................................ 493 393 404 406 337
Non-deferred shares2........................................ 493 393 404 406 337
Deferred cash ................................................... 740 590 605 608 505
Deferred shares ................................................ 740 590 605 608 505
Total variable pay ............................................ 2,467 1,967 2,018 2,028 1,683
Total remuneration .......................................... 2,750 2,590 2,439 2,428 2,150
US$000 US$000 US$000 US$000 US$000
Total remuneration .......................................... 4,247 4,000 3,767 3,750 3,320
1 Variable pay in respect of performance year 2010.
2 Vested shares, subject to a 6-month retention period.
The aggregate remuneration of Directors
and Senior Management (being members of the
GMB) for the year ended 31 December 2010 was
US$67,760,722.
The aggregate amount set aside or accrued to
provide pension, retirement or similar benefits for
Directors and Senior Management for the year ended
31 December 2010 was US$3,348,298.
Executive Directors and members of Senior
Management are generally subject to notice periods
of up to 12 months and a normal retirement age
of 65.
Bank payroll tax
In December 2009, the governments of the UK and
France introduced one-off taxes in respect of certain
bonuses payable by banks and banking groups. In
both countries the tax was levied at 50% on bonuses
awarded during a certain period and over a threshold
amount. The taxes are liabilities of the employer and
are payable on awards of both cash and shares. The
amount payable and paid in respect of the relevant
tax was US$282m in the UK and US$42m in France.
Corporate sustainability
At HSBC, we recognise that environmental, social
and economic issues can affect the Group’s long-
term success as a business. For us, corporate
sustainability means achieving sustainable profit
growth so that we can continue to reward
shareholders and employees, build long-lasting
relationships with customers and suppliers, pay taxes
and duties in those countries where we operate, and
invest in communities for future growth.
Our continuing financial success depends, in
part, on our ability to identify and address certain
factors which present risks or opportunities for the
business. These can affect our reputation, drive
employee engagement, help manage the risks of
lending, leverage savings through eco-efficiency and
secure new revenue streams. They generally fall into
one or more of the four broad areas discussed below.
Business finance
We aim to build long-term customer relationships
around the world through the provision of a
consistent and high-quality service and customer
experience. We use the benefits of our scale,
financial strength, geographical reach and strong
brand value to achieve this.
We aim to take advantage of the opportunities
and manage the risks presented by emerging global
trends by leading the development of sustainable
business models to address them. We understand that
the world is changing, with significant examples
being increased longevity, a widening gap in the
relative growth rates of emerging and mature
economies and the need to move to a lower-carbon
economy in order to mitigate some of the effects of
climate change. Over the long term, we anticipate
playing a leading role in shaping the market response
to these challenges and we are among those financial
institutions identifying how business can adapt in
ways that bring both social and environmental
benefits, while providing viable economic returns.