HSBC 2012 Annual Report Download - page 356

HSBC HOLDINGS PLC
Directors’ Remuneration Report (continued)
Summary of remuneration policy / 2012 remuneration outcomes
354
Remuneration scenarios
(Unaudited)
S T Gulliver
Value of package (£000) Composition of package (%)
£0 £3,000 £6,000 £9,000 £12,000 £15,000
Maximum
Target
Minimum
0% 20% 40% 60% 80% 100%
I J Mackay
Value of package (£000) Composition of package (%)
£0 £3,000 £6,000 £9,000 £12,000 £15,000
Maximum
Target
Minimum
0% 20% 40% 60% 80% 100%
Fixed
1
Long-term incentive plan
3
Annual incentive
2
1 Salary paid in the year for executive Directors, taxable benefits, pension and cash in lieu of pensions.
2 Maximum award level as stated in policy. Includes deferred portion of award. Target has been defined as 50% of the maximum award.
3 Maximum award level as stated in policy. Target has been defined as 50% of the maximum award. The GPSP scorecard has not been
designed with a targeted or expected value of performance. For the purposes of the new regulations, 50% of the maximum award is
deemed as target.
The following Directors have not been included
in the disclosure above: D J Flint, who has not been
eligible for an annual incentive since 2011 and is not
expected to be granted awards under the GPSP other
than in exceptional circumstances, and
A A Flockhart, who ceased to be an executive
Director on 30 April 2012. Non-executive Directors
are not eligible to receive incentive awards.
Summary of 2012 remuneration outcomes
Single figure of remuneration for each executive Director
(Unaudited)
Base salary Benefits1 Pension3
Annual
incentive
Long-term
incentive
2012
total
2011
total
£000 £000 £000 £000 £000 £000 £000
Executive Directors
D J Flint ........................ 1,500 855 – – – 2,355 2,348
A A Flockhart2 .............. 325 239 6 – – 570 3,639
S T Gulliver .................. 1,250 1,220 13 1,950 3,000 7,433 8,047
I J Mackay .................... 700 421 – 1,348 1,400 3,869 3,213
1 The emoluments table on page 361 provides further details on the benefits included.
2 Ceased to be an executive Director on 30 April 2012.
3 As disclosed on page 358.
• Base salary: salary paid in year for executive
Directors.
• Benefits: taxable benefits including cash in lieu
of pension.
• Annual incentive: annual incentive award cash
and share payments (including deferred awards)
for the 2012 performance year. The outcomes of
the performance conditions which determined
the award are described in the next section.
Forty per cent of the annual incentive in respect
of the 2012 performance year is non-deferred.
The non-deferred incentive is split between
50% cash and 50% payable in HSBC Holdings
Restricted Shares, which are subject to a six-
month retention period. 60% of the full annual
incentive award is deferred equally between
cash and shares and vests 100% after five years
subject to the successful completion of the
Deferred Prosecution Agreements and subject
to the terms of the Plan.