HSBC 2012 Annual Report Download - page 421

419
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
The effect of changes in the discount rate and in mortality rates on plans other than the principal plan
Other plans
2012 2011
US$m US$m
Change in defined benefit obligation at year end from a 25bps increase in discount rate ...................... (379) (325)
Change in 2013 pension cost from a 25bps increase in discount rate1 .................................................... (17) –
Increase in defined benefit obligation from each additional year of longevity assumed ........................ 174 144
1 The change in 2013 pension cost from a 25bps increase/decrease was calculated based on the requirements of IAS 19 revised, which
will be adopted from 1 January 2013. The comparative numbers, which show the change in 2012 pension cost from a 25bps
increase/decrease, were calculated in accordance with the accounting policy set out in Note 2(t).
HSBC Holdings
Employee compensation and benefit expense in respect of HSBC Holdings’ employees in 2012 amounted to
US$439m (2011: US$413m). The average number of persons employed by HSBC Holdings during 2012 was 1,323
(2011: 1,212).
Employees of HSBC Holdings who are members of defined benefit pension plans are principally members of either
the HSBC Bank (UK) Pension Scheme or the HSBC International Staff Retirement Benefits Scheme. HSBC
Holdings pays contributions to such plans for its own employees in accordance with the schedules of contributions
determined by the Trustees of the plan.
Directors’ emoluments
The aggregate emoluments of the Directors of HSBC Holdings, computed in accordance with the Companies Act
2006 and the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 were:
2012 2011 2010
US$000 US$000 US$000
Fees ............................................................................................................................. 5,435 5,108 3,597
Salaries and other emoluments ................................................................................... 10,316 12,906 12,841
Annual incentives ....................................................................................................... 13,983 12,516 14,294
Total............................................................................................................................. 29,734 30,530 30,732
Vesting of long-term incentive awards ...................................................................... 5,733 2,596 8,523
In addition, there were payments under retirement benefit agreements with former Directors of US$1,171,796 (2011:
US$1,166,580). The provision at 31 December 2012 in respect of unfunded pension obligations to former Directors
amounted to US$19,285,971 (2011: US$18,006,894).
During the year, aggregate contributions to pension schemes in respect of Directors were US$29,078 (2011:
US$373,310). Discretionary annual incentives for Directors are based on a combination of individual and corporate
performance and are determined by the Group Remuneration Committee. Details of Directors’ remuneration, share
options and awards under the HSBC Share Plan and HSBC Share Plan 2011 are included in the ‘Directors’
Remuneration Report’ on pages 347 to 367.
8 Auditors’ remuneration
2012 2011 2010
US$m US$m US$m
Audit fees payable to KPMG1 .................................................................................... 47.2
48.8 49.1
Audit fees payable to non-KPMG entities ................................................................. 1.4
1.9 2.3
Total auditors’ remuneration ...................................................................................... 48.6 50.7 51.4
1 Fees payable to KPMG for HSBC Holdings’ statutory audit and audit of HSBC’s subsidiaries, pursuant to legislation.
The following fees were payable by HSBC to the Group’s principal auditor, KPMG Audit Plc and its associates
(together ‘KPMG’):