HSBC 2009 Annual Report Download - page 402

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 8, 9 and 10
400
Directors’ emoluments
The aggregate emoluments of the Directors of HSBC Holdings, computed in accordance with the Companies Act
2006 as amended by statutory instrument 2008 No.410, were:
2009 2008 2007
US$000 US$000 US$000
Fees .......................................................................................................................... 3,756 2,529 2,626
Salaries and other emoluments ................................................................................ 11,835 11,584 7,929
Bonuses .................................................................................................................... – – 8,938
15,591 14,113 19,493
Gains on the exercise of share options .................................................................... – 23 13
Vesting of Long-Term Incentive awards ................................................................. 1,579 7,147 4,563
In addition, there were payments under retirement benefit agreements with former Directors of US$1,036,385 (2008:
US$1,139,968). The provision at 31 December 2009 in respect of unfunded pension obligations to former Directors
amounted to US$16,296,028 (2008: US$15,164,791).
During the year, aggregate contributions to pension schemes in respect of Directors were US$788,734 (2008:
US$664,174).
Discretionary bonuses for Directors are based on a combination of individual and corporate performance and are
determined by the Remuneration Committee. Details of Directors’ remuneration, share options and conditional
awards under the Restricted Share Plan 2000 and the HSBC Share Plan are included in the ‘Directors’ Remuneration
Report’ on pages 334 to 348.
9 Auditors’ remuneration
Auditors’ remuneration in relation to the statutory audit amounted to US$50.7 million (2008: US$54.9 million; 2007:
US$52.3 million). The following fees were payable by HSBC to the Group’s principal auditor, KPMG Audit Plc and
its associates (together ‘KPMG’):
2009 2008
2007
US$m US$m
US$m
Audit fees for HSBC Holdings’ statutory audit1 ..................................................... 2.3
2.1
3.0
– fees relating to current year ............................................................................. 2.1 2.5
3.0
– fees relating to prior year ................................................................................ 0.2 (0.4)
–
Fees payable to KPMG for other services provided to HSBC ................................ 77.1 88.3
79.1
Audit-related services:
– audit of HSBC’s subsidiaries, pursuant to legislation2 .............................. 45.9 48.6
45.2
– other services pursuant to legislation3 ........................................................ 24.2 26.5
19.4
Tax services4 ........................................................................................................ 2.6 3.1
2.9
Other services:
– services relating to information technology5 .............................................. 0.3 0.6
0.4
– services related to corporate finance transactions6 ..................................... 0.1 1.4
1.8
– all other services7 ........................................................................................ 4.0 8.1
9.4
Total fees payable .................................................................................................... 79.4 90.4
82.1
1 Fees payable to KPMG Audit Plc for the statutory audit of the consolidated financial statements of HSBC and the separate financial
statements of HSBC Holdings. They exclude amounts payable for the statutory audit of HSBC Holdings’ subsidiaries which have been
included in ‘Fees payable to KPMG for other services provided to HSBC’.
2 Including fees payable to KPMG for the statutory audit of HSBC’s subsidiaries.
3 Including services for assurance and other services that relate to statutory and regulatory filings, including comfort letters and interim
reviews. Other services pursuant to legislation included no fees paid to KPMG in respect of work relating to preparation for reporting
under section 404 of the Sarbanes-Oxley Act (2008: nil; 2007: US$1.6 million). No other accounting firms were paid for work on this
project in 2009 (2008: US$1.2 million; 2007: US$2.5 million).
4 Including tax compliance services and tax advisory services.
5 Including advice on IT security and business continuity and performing agreed-upon IT testing procedures.
6 Including fees payable to KPMG for transaction-related work, including US debt issuances.
7 Including other assurance and advisory services such as translation services, ad-hoc accounting advice and review of financial models.