HSBC 2011 Annual Report Download - page 266

HSBC HOLDINGS PLC
Directors’ Remuneration Report (continued)
Executive Directors’ remuneration > GPSP / 2011 executive Directors’ emoluments and remuneration
264
consequence of the incidence of the PPI redress
settlement, the mis-selling instances uncovered at
NHFA Limited and continuing legacy legal and
compliance issues in the US, there could be no
award under this element of the scorecard.
The performance outcome of 50% was then
applied to maximum face values (expressed as a
percentage of salary) for each participant. The
awards to be made in respect of 2011 are detailed
below:
Maximum face
value of award
Performance
outcome
Awards
made
S T Gulliver ................................................................................................................ 600% 50% 300%
I J Mackay .................................................................................................................. 200% 50% 100%
2012 long-term scorecard
The long-term scorecard against which performance
will be assessed in 2012 is detailed below. The 2012
scorecard remains consistent with 2011, with the
exception that the weighting for strategy has been
increased from 10% to 20% to emphasise the
importance of this element. This increase in
weighting has been accommodated by a reduction
from 10% to 5% for both Brand Equity and People
and Values. Overall performance is to be judged on
performance outcomes and adherence to HSBC
Va lu e s.
2012 scorecard
Long-term
target range Weighting
Measure
Return on equity ......................................................................................................................... 12% – 15% 15%
Cost efficiency ratio ................................................................................................................... 48% – 52% 15%
Capital strength ........................................................................................................................... >10% 15%
Progressive dividend payout within 40% – 60% range ............................................................. 40% – 60% 15%
Strategy ....................................................................................................................................... Judgement 20%
Brand equity ...............................................................................................................................
Top 3 rating and
improve US$bn value 5%
Compliance and reputation ......................................................................................................... Judgement 10%
People and values ....................................................................................................................... Judgement 5%
100%
2011 Executive Directors’ variable pay summary
The Committee is conscious of the different
requirements for disclosing the various elements of
variable pay. The table below simply details in one
place the actual salary and variable pay awarded to the
executive Directors in respect of the 2011
performance year.
A A Flockhart S T Gulliver I J Mackay
(Unaudited)
Maximum
Multiple
2011
Multiple
awarded
2011
£000
2010
£000
2011
Multiple
awarded
2011
£000
2010
£000
2011
Multiple
awarded
2011
£000
2010
£000
Salary1 ............. 1.00 1.00 975 820 1.00 1,250 800 1.00 700 57
Annual bonus2.. 3.00 1.98 1,926 1,808 1.72 2,156 5,200 1.55 1,086 61
GPSP awards3... 6.00 – – 1,069 3.00 3,750 2,350 1.00 700 55
Total ................ 2,901 3,697 7,156 8,350 2,486 173
1 As disclosed in the Directors emoluments table on page 265.
2 As disclosed in the Directors remuneration table on page 265. The 2011 bonus will be fully delivered in HSBC shares, 60% of the bonus
is deferred over a period of three years, 33% vests on the first and second anniversary of grant and 34% on the third anniversary of
grant. During the vesting period the Committee has the authority to claw back part or all of the award.
3 As disclosed in the 2011 long-term scorecard and performance outcome on page 263. The award is subject to a five-year vesting period
during which the Committee has the authority to claw back part or all of the award. On vesting the net of tax shares must be retained
until the participant retires.