HSBC 2006 Annual Report Download - page 286

HSBC HOLDINGS PLC
Directors’ Remuneration Report (continued)
Executive Directors / Non-executive Directors
284
Graph 1: HSBC TSR and Benchmark TSR
Graph 2: HSBC TSR and FTSE 100 Index
Graph 3: HSBC TSR and MSCI World Index
Graph 4: HSBC TSR and MSCI Financials Index
Pursuant to the Directors’ Remuneration Report
Regulations 2002, graph 5 below shows HSBC
Holdings’ TSR performance against the FTSE 100
Index, for the five-year period ended 31 December
2006. The FTSE 100 has been chosen as this is a
recognised broad equity market index of which
HSBC Holdings is a member.
Graph 5: HSBC TSR and FTSE 100 Index
Source: Datastream
Pensions
The normal retirement age for executive Directors
is 65.
The pension entitlements earned by the
executive Directors during the year are set out on
pages 286 and 287.
Service contracts
HSBC’s policy is to employ executive Directors on
one-year rolling contracts although, on recruitment,
longer initial terms may be approved by the
Remuneration Committee. The Remuneration
Committee will, consistent with the best interests of
the Group, seek to minimise termination payments.
Each executive Director has a rolling service
contract with a notice period of 12 months for either
party save that D J Flint’s contract provides for nine
months notice to be given by Mr Flint. There are no
provisions for compensation upon early termination
of any executive Directors’ service contracts.
The dates of executive Directors’ service
contracts are as follows:
Contract date
Sir John Bond1 ................................... 14 July 1994
D J Flint ............................................. 29 September 1995
M F Geoghegan ................................. 25 May 2004
S K Green ........................................... 9 March 1998
A W Jebson1 ....................................... 14 January 2000
1 Retired as a Director on 26 May 2006.
Other directorships
Executive Directors, if so authorised by either the
Nomination Committee or the Board, may accept
appointments as non-executive Directors of suitable
companies which are not part of HSBC. Approval
will not be given for executive Directors to accept a
non-executive directorship of more than one FTSE
100 company. When considering a non-executive
appointment, the Nomination Committee or Board
will take into account the expected time commitment