HSBC 2011 Annual Report Download - page 318

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
7 – Employee compensation and benefits
316
1 During 2011 the Group adopted a more stringent treatment for impaired loans for geographical regions with significant levels of
forbearance. As a result loans and advances have been classified as impaired that under the previous disclosure convention would
otherwise have been classified as neither past due nor impaired or past due but not impaired. The effect of this change on 2011 reported
numbers was to increase interest earned on impaired loans from US$0.3bn to US$1.5bn. Restatement of comparative data prior to
31 December 2010 is impracticable (see page 133, ‘Impaired loans disclosure’, for further details).
7 Employee compensation and benefits
2011 2010 2009
US$m US$m US$m
Wages and salaries ...................................................................................................... 18,923 17,193 16,268
Social security costs .................................................................................................... 1,754 1,567 1,512
Post-employment benefits .......................................................................................... 489 1,076 688
21,166 19,836 18,468
Included in ‘Wages and salaries’ above is US$1,162m (2010: US$812m; 2009: US$683m) relating to share-based
payment arrangements (see Note 9). Wages and salaries also includes US$88m (2010: US$15m; 2009: US$5m) in
respect of deferred cash awards for current and prior performance years. The Group expects to recognise US$159m in
the future in respect of deferred cash awards for current and prior performance years.
Average number of persons employed by HSBC during the year
2011 2010 2009
Europe ......................................................................................................................... 81,263 79,902 84,056
Hong Kong ................................................................................................................. 30,323 29,105 28,894
Rest of Asia-Pacific .................................................................................................... 92,685 89,737 88,122
Middle East and North Africa .................................................................................... 8,816 8,983 8,468
North America ............................................................................................................ 34,871 36,822 42,202
Latin America ............................................................................................................. 58,026 57,778 57,774
Total ............................................................................................................................ 305,984 302,327 309,516
Post-employment benefit plans
Income statement charge
2011 2010 2009
US$m US$m US$m
Defined benefit pension plans .................................................................................... (172) 468 161
– HSBC Bank (UK) Pension Scheme ................................................................ (428) 308 (179)
– Other plans ...................................................................................................... 256 160 340
Defined contribution pension plans ........................................................................... 626 545 492
454 1,013 653
Defined benefit healthcare plans ................................................................................ 32 58 31
Defined contribution healthcare plans ........................................................................ 3 5 4
489 1,076 688