HSBC 2012 Annual Report Download - page 412

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
7 – Employee compensation and benefits
410
Reconciliation of total incentive awards granted to incentive awards in employee compensation and benefits
2012 2011 2010
US$m US$m US$m
Total incentive awards approved and granted for the current year1 .......................... 3,689 3,966 4,297
Less: deferred bonuses awarded for the current year but not amortised .................... (355) (369) (778)
Total incentives awarded and recognised in the current year .................................... 3,334 3,597 3,519
Current year charges for deferred bonuses from previous years ............................... 671 897 625
Other2 .......................................................................................................................... (28) (261) (109)
Total incentive awards for the current year included in employee compensation
and benefits ............................................................................................................ 3,977 4,233 4,035
1 This represents the amount of the Group variable pay pool that has been approved and granted. The total amount of Group variable pay
pool approved by the Group Remuneration Committee is disclosed in the Directors’ Remuneration Report on page 347.
2 This mainly comprises incentive awards paid to employees acting as selling agents, which form an integral part of the effective interest
of a financial instrument, recognised as an adjustment to the effective interest rate and recorded in ‘Interest income’.
The following table identifies the charge recognised in the current year, or expected to be recognised in future years,
in relation to deferred bonus awards from the current year and prior year bonus pools.
Income statement charge for current and prior year bonus pools
Current year
bonus pool1
Prior year
bonus pools Total
US$m US$m US$m
2012
Charge recognised in 2012 ......................................................................................... 277 671 948
Deferred share awards ............................................................................................. 224 613 837
Deferred cash awards ............................................................................................... 53 58 111
Charge expected to be recognised in 2013 or later .................................................... 355 376 731
Deferred share awards ............................................................................................. 315 335 650
Deferred cash awards ............................................................................................... 40 41 81
2011
Charge recognised in 2011 ......................................................................................... 165 897 1,062
Deferred share awards ............................................................................................. 131 843 974
Deferred cash awards ............................................................................................... 34 54 88
Charge expected to be recognised in 2012 or later .................................................... 369 731 1,100
Deferred share awards ............................................................................................. 289 652 941
Deferred cash awards ............................................................................................... 80 79 159
2010
Charge recognised in 2010 ......................................................................................... – 625 625
Deferred share awards ............................................................................................. – 610 610
Deferred cash awards ............................................................................................... – 15 15
Charge expected to be recognised in 2011 or later .................................................... 778 802 1,580
Deferred share awards ............................................................................................. 759 801 1,560
Deferred cash awards ............................................................................................... 19 1 20
1 Current year bonus pool relates to the bonus pool declared for the reporting period (2012 for the current year, 2011 for the 2011
comparatives and 2010 for the 2010 comparatives).