HSBC 2015 Annual Report Download - page 313

HSBC HOLDINGS PLC
311
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
NON-FINANCIAL
Strategy execution • The Group outlined 10 Strategic Actions at the June 2015 Investor Update to re-size and simplify the Group
and redeploy resources to capture future growth opportunities.
• There was strong progress in driving reductions in RWAs, with 45% of the targeted 2017 RWA reduction
delivered to date. The Group is implementing several transformation programmes to streamline the cost
base, and it was noted that more work is required to meet related medium-term targets in this regard.
• The Group has set the foundations for further growth in Asia, investing in select locations, for example,
the Pearl River Delta in mainland China and in products, including Insurance and asset management. The
Committee also noted the Group’s role in driving the internationalisation of the renminbi and business
scale in ASEAN.
Global Standards
including risk and
compliance
• The Group published Global Standards for AML and sanctions compliance in all countries and progressed
the implementation of enhanced controls and related data initiatives. Significant effort continues towards
embedding the enhanced standards and controls and improving operational effectiveness.
• The Committee noted progress made, and that material work remains to comply fully with enhanced
Global Standards by the end of 2017.
• However, the Committee exercised its discretion and the assessment was reduced from 75% to 60%. This
was based on feedback received from the Monitor, matters arising from risk and compliance incidents,
and the number and extent of unsatisfactory internal audits covering AML and sanctions related issues.
Non-executive Directors
Fees and benefits
(Audited)
Fees Benefits9 Total
2015 2014 2015 2014 2015 2014
£000 £000 £000 £000 £000 £000
Phillip Ameen1 403
–
13
–
416
–
Kathleen Casey 155 129 29 12 184 141
Safra Catz2 95 95 44 99 99
Laura Cha3 238 197 14 22 252 219
Lord Evans of Weardale 190 167 914 199 181
Joachim Faber 145 145 14 10 159 155
Rona Fairhead4 510 494 14 19 524 513
Sam Laidlaw 174 140 13
–
187 140
Irene Lee5 184
–
2
–
186
–
John Lipsky 180 168 49 27 229 195
Rachel Lomax 253 205 11 21 264 226
Heidi Miller6 175 52 31
–
206 52
Sir Simon Robertson 195 260 12 6 207 266
Jonathan Symonds7 520 365 13 521 368
Pauline van der Meer Mohr8 32
–
5
–
37
–
Total 3,449 2,417 221 138 3,670 2,555
Total ($000) 5,274 3,979 338 229 5,609 4,208
1 Appointed as a non-executive Director of HSBC Holdings plc on 1 January 2015. Includes fees of £278,000 in 2015 as Director, Chairman of the Audit
Committee and member of the Risk Committee of HSBC North America Holdings Inc.
2 Retired as a Director on 31 December 2015.
3 Includes fees of £63,000 in 2015 (£57,000 for 2014) as Director, Deputy Chairman and member of the Nomination Committee of The Hongkong and
Shanghai Banking Corporation Limited.
4 Includes a fee of £360,000 in 2015 (£334,000 for 2014) as non-executive Chairman of HSBC North America Holdings Inc.
5 Appointed as a non-executive Director of HSBC Holdings plc on 1 July 2015. Includes fees of £137,000 in 2015 as Director and member of the Audit
Committee of The Hongkong and Shanghai Banking Corporation Limited and as Director, member of the Audit Committee and Chairman of the Risk
Committee of Hang Seng Bank Limited.
6 Includes a fee of £20,000 as a non-executive Director and member of the Nominating and Governance Committee of HSBC North America Holdings
Inc. following appointment on 1 October 2015.
7 Includes a fee of £345,000 in 2015 (£247,000 for 2014) as non-executive Chairman of HSBC Bank plc.
8 Appointed on 1 September 2015.
9 Benefits include accommodation and travel-related expenses relating to the attendance at Board and other meetings at HSBC Holdings registered
office. Amounts disclosed have been grossed up using a tax rate of 45%, where relevant.
Payments to past Directors
(Audited)
Alexander Flockhart
Mr Flockhart’s employment with HSBC ended on 30 April
2012. The Directors’ Remuneration Report in the 2012 ARA
provided details of the remuneration arrangements that
applied to Mr Flockhart at the time of his retirement. The
former executive Director moved from Hong Kong to the
UK on 1 January 2011 to undertake his appointment as
executive Director, Chairman of Europe, MENA, LAM and
CMB. Due to the number of visits he was required to make
to the UK prior to his appointment, additional UK tax
relating to the period prior to his appointment and
relocation to the UK became due. This liability is in addition
to the Hong Kong taxes paid and borne by Mr Flockhart in
respect of the same employment related income, i.e. it was
subject to double taxation both in Hong Kong and the UK,
therefore does not represent any additional remuneration