HSBC 2015 Annual Report Download - page 294

Directors’ Remuneration Report (continued)
Directors’ remuneration policy
HSBC HOLDINGS PLC
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Purpose and link to strategy Operation Maximum opportunity
Other These elements are not subject to performance metrics.
Benefits
To provide benefits in
accordance with local
market practice.
Benefits take account of local market practice and include,
but are not restricted to, the provision of medical insurance,
income protection insurance, health assessment, life
assurance, club membership, tax return assistance, car
benefit (including any tax due on the benefit) and travel
assistance.
Stuart Gulliver is also provided with accommodation and car
benefit in Hong Kong. HSBC pay any tax due on this benefit.
Additional benefits may also be provided where an
executive is relocated or spends a substantial proportion of
his/her time in more than one jurisdiction based on business
needs. Such benefits could include, but are not restricted to,
airfare, accommodation, shipment, storage, utilities and any
tax and social security that may be due in respect of such
benefits.
Determined by the nature of the benefit
provided. The benefit amount will be
disclosed in the Single Figure Table of
Remuneration for the relevant year.
Shareholding guidelines
To ensure appropriate
alignment with the
interest of our
shareholders.
Executive Directors and other senior executives are subject
to shareholding guidelines.
The shareholding guidelines as a percentage of base salary
are:
• Group Chairman: 100%
• Group CEO: 400%
• Group Finance Director: 300%
• Group CRO: 300%
Individuals are given five years from 2014 or (if later) their
appointment to build up the recommended levels of
shareholding. The shareholding guideline does not count
unvested share-based incentives.
The Committee reviews compliance with the shareholding
guidelines. The Committee has full discretion in determining
any penalties in cases of non-compliance, which could
include a reduction of future awards and/or an increase in
the proportion of the annual variable pay that is deferred
into shares.
HSBC operates an anti-hedging policy and executive
Directors are required to certify each year that they have
not entered into any personal hedging strategies in relation
to their holdings of HSBC shares.
N/A
All employee share plans
To promote share
ownership by all
employees.
Executive Directors are also entitled to participate in all
employee share plans, such as the HSBC Sharesave, on the
same basis as all other employees.
Under the Sharesave, executive Directors can make monthly
savings over a period of three or five years towards the grant
of an option over HSBC shares. The option price can be at a
discount, currently of up to 20%, on the share price at the
start of the savings period.
The number of options determined by
maximum savings set by HM Revenue and
Customs per month, currently £500.