HSBC 2013 Annual Report Download - page 84

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HSBC BANK CANADA
82
4 Employee compensation and benefits (continued)
c Post-employment benefit plans (continued)
Summary of remeasurement, net on defined benefit obligations
Pension plans Non-pension plans
2013
$m
2012
$m 2013
$m
2012
$m
Experience gain on plan assets ................................... 38 14 ––
Demographic assumptions .......................................... (26) –(7) –
Financial assumptions ................................................. 27 (61) 6 (16)
Gain on curtailments ................................................... (1) 6412
Effect of increase in limit on plan surpluses ............... (20) (1) – –
18 (42) 3 (4)
5 Share-based payments
Share-based payments income statement charge
2013
$m
2012
$m
Restricted share awards .................................................................................................. 815
Savings-related share option plans ................................................................................. 12
917
During 2013, $9m was charged to the income statement in respect of share-based payment transactions (2012: $17m)
mostly relating to restricted share awards. These awards are generally granted to employees early in the year following
the year to which the award relates. The charge for these awards is recognized from the start of the period to which the
service relates to the end of the vesting period. The vesting period is the period over which the employee satisfies certain
service conditions in order to become entitled to the award. Due to the staggered vesting profile of certain deferred share
awards, the employee becomes entitled to a portion of the award at the end of each year during the vesting period. The
income statement charge reflects this vesting profile.
The purpose of restricted share awards is to support retention of key employees, and to reward employee performance
and potential. Vesting of restricted share awards is generally subject to continued employment with a vesting period of
three years and may be subject to performance conditions.
The weighted average fair value of shares awarded by the HSBC Group for restricted share awards in 2013 was $11.20 per
share (2012: $9.60 per share). Fair value is measured at the prevailing market price at the date of the share award.
The bank carries a liability in respect of restricted share awards of $20m as at 31 December 2013 (2012: $26m) to its
parent, HSBC Holdings, for the funding of awards that will vest in the future. The liability is measured at fair value with
changes recorded within equity.
Notes on the Consolidated Financial Statements (continued)
HSBC BANK CANADA