HSBC 2015 Annual Report Download - page 299

HSBC HOLDINGS PLC
297
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Components of remuneration package of a new executive Director
Component Approach taken to each component of remuneration
Fixed pay Base salary and fixed pay allowance to reflect the individual’s role, experience and responsibility and be set
in the context of market practice.
Pension in line with policy as set out in the ‘Remuneration policy’ table on page 289.
Benefits Benefits to be provided will be dependent on circumstances but in line with Group policy and the
‘Remuneration policy’ table, including the global mobility policy, where applicable, and local regulations.
Annual incentive New joiners will be eligible to be considered for an annual incentive award as set out in the ‘Remuneration
policy’ table on page 290.
Guaranteed bonuses are only permitted by exception and must be limited to the first year of service,
subject to the Group Deferral Policy and performance requirements.
Long-term incentive May be considered for LTI award in year as set out in the ‘Remuneration policy’ table on page 291.
Buyout May be offered if the individual holds any outstanding unvested awards which are forfeited on resignation
from the previous employer.
Group buyout policy is in line with the PRA Remuneration Rules which states that both the terms and
amount of any replacement awards will not be more generous than the award forfeited on departure from
the former employer.
Delivered as HSBC deferred shares with vesting and retention periods to match the terms of forfeited
awards with previous employer as closely as possible, subject to proof of forfeiture and other relevant
documentation. Where the time to vesting is less than 60 days, cash or deferred cash may be awarded for
administrative purposes.
Where appropriate, the Committee retains the discretion to utilise the provisions provided in the Listing
Rules for the purpose of making buy-out awards.
Service contracts and policy on payments on loss of
office – executive Directors
Our policy is to employ executive Directors on service
agreements with 12 months’ notice period.
Service contracts
Contract date
(rolling)
Notice period
(Director & HSBC)
Director
Douglas Flint 14 February 2011 12 months
Stuart Gulliver 10 February 2011 12 months
Iain Mackay 4 February 2011 12 months
Marc Moses 27 November 2014 12 months
Letters setting out the terms of appointment of each of
the executive Directors are available for inspection at the
Company’s registered office. Consistent with the best
interests of the Group, the Committee will seek to minimise
termination payments. Directors may be eligible for a
payment in relation to statutory rights.
The following table sets out the basis on which payments
on loss of office may be made. Other than as set out in the
table, there are no further obligations which could give rise
to remuneration payments or payments for loss of office: