HSBC 2015 Annual Report Download - page 298

Directors’ Remuneration Report (continued)
Directors’ remuneration policy
HSBC HOLDINGS PLC
296
Remuneration scenarios
For the proposed new remuneration policy, the total
remuneration opportunity for target and maximum
performance has been reduced for executive Directors.
The following charts show how the total value of
remuneration (excluding benefits) and its composition
would vary under different performance scenarios for
executive Directors. ‘Previous’ models the policy in place
prior to shareholder approval in 2014. ‘Current’ models
the policy approved at the 2014 AGM. ‘New’ models the
proposed policy, which will be effective from the date of
the 2016 AGM, subject to shareholders’ approval. Target
is set at 50% of maximum variable pay.
There is no chart for Douglas Flint, who is not eligible for
variable pay awards.
Stuart Gulliver
Amounts in £’000
Iain Mackay
Amounts in £’000
Marc Moses
Amounts in £’000
Other directorships
Executive Directors may accept appointments as non-
executive directors of companies which are not part
of HSBC if so authorised by either the Board or the
Nomination Committee.
When considering a request to accept a non-executive
appointment, the Board or the Nomination Committee will
take into account, amongst other things, the expected time
commitment associated with the proposed appointment.
The time commitment for external appointments is also
routinely reviewed to ensure that they will not compromise
the Directors’ commitment to HSBC. The Directors’
biographies as set out on pages 294 to 254 includes those
directorships provided for under CRD IV.
Any remuneration receivable in respect of an external
appointment of an executive Director is normally paid to
the Group, unless otherwise approved by the Nomination
Committee or the Board.
Approach to recruitment remuneration –
executive Directors
On the recruitment or appointment of a new executive
Director, the Committee would adhere to the following
principles:
• remuneration packages should be in line with the
approved policy for executive Directors;
• remuneration packages must meet any applicable
local regulatory requirements; and
• where necessary, compensation may be provided
in respect of forfeiture of awards from an existing
employer (buyout awards).
Outlined in the following table are all components that
would be considered for inclusion in the remuneration
package of a new executive Director and, for each, the
approach that would be adopted.
In the case of an internal appointment, any variable
element awarded in respect of the prior role may be
allowed to pay out according to its terms on grant.
100%
100% 100%
25%
50% 50%
14%
33% 33%
25%
17% 20% 29%
22% 27%
50% 33% 30%
57%
45% 40%
1,875
3,575 3,325
7,500 7,150 6,650
13,125
10,725
9,975
Previous Current New
Minimum Target Maximum
Previous Current New Previous Current New
100% 100% 100% 25% 50% 50% 14% 33% 33%
25%
17% 20% 29% 22% 27%
50% 33% 30%
57%
45% 40%
1,050
2,000 1,860
4,200 4,000 3,720
7,350
6,000 5,580
Previous Current New
Minimum Target Maximum
Previous Current New Previous Current New
Fixed pay Annual incentive GPSP / LTI
100% 100% 100% 25% 50% 50% 14% 33% 33%
25%
17% 20% 29% 22% 27%
50% 33% 30%
57%
45% 40%
1,050
2,000 1,860
4,200 4,000 3,720
7,350
6,000 5,580
Previous Current New
Minimum Target Maximum
Previous Current New Previous Current New