HSBC 2015 Annual Report Download - page 296

Directors’ Remuneration Report (continued)
Directors’ remuneration policy
HSBC HOLDINGS PLC
294
Release profile of total compensation
The following chart provides an illustrative release profile of target performance total compensation for the Group CEO based
on the new remuneration policy.
Illustration of release profile at target total compensation
Choice of performance measures and targets
The performance measures were selected as they reflect
the Group’s financial targets and strategy. The measures
were determined in consultation with major shareholders.
The targets take into account a number of factors,
including the economic environment, market conditions
and expectations, the Group’s strategic actions and risk
appetite.
Further details of the measures and targets under the
policy are in the tables below.
Performance measures for annual incentive
Financial measures
Global Standards, including risk
and compliance Personal objectives
Will be aligned to achievement of our
annual operating plan targets and linked
to the key Group’s key strategic actions.
Measures may include but are not limited
to:
• profit before tax;
• reduction of Group risk-weighted assets
(‘RWA’s);
• delivery of cost savings; and
• strategic growth.
Targets for threshold and maximum
vesting will be based on various factors
including each year’s annual operating
plan targets.
Drive implementation of our Global
Standards and risk and compliance policies.
Measures may include but are not limited
to:
• progress and embedding of anti-money
laundering and sanctions policies;
• implementation of enhanced customer
due diligence programmes worldwide;
and
• implementation and embedding of
conduct programmes.
The targets set will be linked to milestones
agreed with the Monitor, regulators and
overall Group objectives.
Progress made on delivering key non-
financial milestones aligned to the Group’s
strategic actions, leadership and people
metrics.
25%
26%
5%
5%
11%
11%
6%
6%
6%
2016 2017 2018 2019 2020 2021 2022 2023 2024
100%
0%
Base salary Pension Annual incentive Fixed pay allowance LTI