HSBC 2006 Annual Report Download - page 287

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of such appointment. The time commitment for
executive Directors’ external appointments will be
reviewed as part of the annual Board review. Any
remuneration receivable in respect of an external
appointment is normally paid to HSBC, unless
otherwise approved by the Remuneration
Committee.
Sir John Bond retained his fees as a non-
executive Director of the Ford Motor Company,
which were provided partly in the form of restricted
shares, which become unrestricted over a period of
five years. During the period from 1 January to
26 May 2006, when Sir John Bond retired as a
Director of HSBC Holdings, the fees received were
US$32,000 in cash and US$48,000 deferred into
Ford common stock units. In addition, Ford provided
US$200,000 of life assurance and US$500,000 of
accidental death or dismemberment insurance. The
life assurance can be continued after retirement from
the board or Sir John Bond could elect to have it
reduced to US$100,000 and receive US$15,000 a
year for life. The accidental death or dismemberment
insurance ends upon retirement from the board.
Non-executive Directors
Non-executive Directors are appointed for fixed
terms not exceeding three years, subject to their
re-election by shareholders at subsequent Annual
General Meetings. Non-executive Directors have no
service contract and are not eligible to participate in
HSBC’s share plans. Non-executive Directors’ terms
of appointment will expire as follows: in 2007,
R K F Ch’ien, S Hintze and H Sohmen; in 2008,
Lord Butler, Baroness Dunn, J D Coombe,
W K L Fung, J W J Hughes-Hallett and Sir Brian
Moffat; in 2009, S W Newton, S M Robertson and
Sir Brian Williamson; and in 2010, R A Fairhead, Sir
Mark Moody-Stuart and G Morgan.
Fees
Non-executive Directors’ fees are regularly reviewed
and compared with other large international
companies. The current fee, which was approved by
shareholders in 2006, is £65,000 per annum.
In addition, non-executive Directors receive the
following fees:
Chairman, Audit Committee ...................... £50,000 p.a.
Member, Audit Committee ......................... £20,000 p.a.
During 2006, seven meetings of the Group Audit Committee
were held.
Chairman, Remuneration Committee ......... £40,000 p.a.
Member, Remuneration Committee ........... £20,000 p.a.
During 2006, seven meetings of the Remuneration Committee
were held.
Chairman, Nomination Committee ............ £30,000 p.a.
Member, Nomination Committee ............... £20,000 p.a.
During 2006, four meetings of the Nomination Committee
were held.
Chairman, Corporate Responsibility
Committee .............................................. £30,000 p.a.
Member, Corporate Responsibility
Committee .............................................. £20,000 p.a.
During 2006, five meetings of the Corporate Responsibility
Committee were held.