HSBC 2015 Annual Report Download - page 365

HSBC HOLDINGS PLC
363
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
‘Wages and salaries’ include the effect of share-based payments arrangements, of which $757m were equity settled (2014:
$732m; 2013: $630m), as follows:
2015 2014 2013
$m $m $m
Restricted share awards 748 738 599
Savings-related and other share award option plans 43 36 63
Year ended 31 December 791 774 662
HSBC share awards
Award Policy Purpose
Restricted share
awards (including
annual incentive
awards delivered
in shares) and
GPSP
• An assessment of performance over the relevant period
ending on 31 December is used to determine the amount
of the award to be granted.
• Deferred awards generally require employees to remain in
employment over the vesting period and are not subject to
performance conditions after the grant date.
• Deferred share awards generally vest over a period of three
years and GPSP awards vest after five years.
• Vested shares may be subject to a retention requirement
(restriction) post-vesting. GPSP awards are retained until
cessation of employment.
• Awards granted from 2010 onwards are subject to a malus
provision prior to vesting.
• Awards granted to Material Risk Takers from 2015 onwards
are subject to clawback post vesting.
• To drive and reward performance consistent
with strategy and align to shareholder
interests.
• Deferral provides an incentive for a longer-
term commitment and the ability to apply
malus.
International
Employee Share
Purchase Plan
(‘ShareMatch’)
• The plan was first introduced in Hong Kong in 2013 and now
includes employees based in 25 jurisdictions.
• Shares are purchased in the market each quarter up to a
maximum value of £750, or the equivalent in local currency.
• Matching awards are added at a ratio of one free share for
every three purchased.
• Matching awards vest subject to continued employment and
the retention of the purchased shares for a maximum period of
two years and nine months.
• To align the interests of employees with the
creation of shareholder value.
Movement on HSBC share awards
2015 2014
Number
(000s)
Number
(000s)
Restricted share awards outstanding at 1 January 116,483 116,932
Additions during the year 80,749 82,871
Released in the year (75,235) (78,224)
Forfeited in the year (3,332) (5,096)
Restricted share awards outstanding at 31 December 118,665 116,483
Weighted average fair value of awards granted ($) 9.67 10.18