HSBC 2010 Annual Report Download - page 233

231
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
Pensions
(Audited)
V H C Cheng is a member of the Hong Kong Special
Administrative Region Mandatory Provident Fund
(‘MPF’) and received an executive allowance of
25% of annual basic salary during 2010, less the
mandatory contributions to the MPF by both the
employer and employee, to fund personal pension
arrangements (HK$2,313,000). During 2010, the
mandatory employer contribution to the MPF in
respect of Mr Cheng was HK$12,000.
D J Flint received an executive allowance of
55% of basic salary in lieu of personal pension
arrangements in the month of January. From
1 February 2010, this allowance was reduced to
50% of basic salary. The executive allowance for
the whole of 2010 amounted to £425,224.
A A Flockhart received employer contributions
of 40% of basic salary into a personal pension plan in
the month of January 2010. From 1 February 2010
Mr Flockhart received employer contributions of 50%
of basic salary into a pension plan. The employer
contributions for the whole of 2010 amounted to
£404,319.
M F Geoghegan received an executive
allowance of 50% of basic salary in lieu of pension
between 1 January and 25 January 2010. From
26 January 2010, Mr Geoghegan received employer
contributions of 50% of basic salary into a pension
plan. The employer contributions for the whole of
2010 amounted to £560,486.
Lord Green ceased membership of the HSBC Bank
(UK) Pension Scheme on 5 April 2006. Since 6 April
2006, Lord Green has been entitled to receive benefits
from an Employer Funded Retirement Benefits Scheme
which together with entitlements from the HSBC Bank
(UK) Pension Scheme provided benefits to Lord Green
that were broadly comparable to an accrual rate of
one-thirtieth of pensionable salary for each year of
pensionable service. Lord Green retired on 3 December
2010 and began receiving his pension from 4 December
2010.
S T Gulliver received employer contributions of
30% of basic salary into a personal pension plan in
the month of January 2010. From 1 February 2010
Mr Gulliver’s pension arrangements were increased to
50% of basic salary. This was delivered as employer
contributions of 30% of basic salary into a personal
pension plan and an executive allowance of 20% of
basic salary. The employer contributions and the
executive allowance for the whole of 2010 amounted
to £386,667.
I J Mackay received an executive allowance of
50% of basic salary in lieu of pension with effect from
his appointment as executive Director on 3 December
2010 (£28,269 for the period to 31 December 2010) to
fund personal pension arrangements.
Defined Benefit Pension arrangements
Accrued
annual
pension at
31 December
2010
Increase in
accrued
pension
during
2010
Increase in
accrued
pension
during 2010,
excluding
any increase
for inflation
Transfer
value
of accrued
pension at
31 December
20091
Transfer
value
of accrued
pension at
31 December
20101
Increase of
transfer value
of accrued
pension (less
personal
contributions)
in 20101
Transfer value
(less personal
contributions) at
31 December 2010
relating to increase
in accrued pensions
during 2010,
excluding any
increase for inflation1
£000 £000 £000 £000
£000 £000 £000
A A Flockhart2 ... 283 13 13 4,863 4,974 111 201
Lord Green3 ........ – 38 5 19,119 – 381 –
1 The transfer value represents a liability of HSBC’s pension funds and not a sum paid or due to the individual; it cannot therefore
meaningfully be added to annual remuneration.
2 A A Flockhart ceased accrual of pension in the International Staff Retirement Benefits Scheme (‘ISRBS’) on 30 November 2008 and he
has deferred commencement of his pension. He received no increase for inflation to his accrued pension on 1 January 2010. The ISRBS
retains a liability for a contingent spouse’s pension of £129,900 per annum as at 31 December 2010.
3 Lord Green retired as a Director on 3 December 2010 and commenced receiving his pension from 4 December 2010.
The table overleaf shows unfunded pension
payments, in respect of which provision has been
made, during 2010 to six former Directors of HSBC
Holdings.
The payments in respect of R Delbridge and
Sir Brian Pearse were made by HSBC Bank plc as
former directors of that bank. The payment in
respect of C F W de Croisset was made by HSBC
France as a former director of that bank. There were
no increases to sterling values of the pensions during
2010.