HSBC 2015 Annual Report Download - page 281

HSBC HOLDINGS PLC
279
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Everyone at HSBC has a responsibility for helping to create
a safe working environment. Employees are expected to
take ownership of their safety and are encouraged and
empowered to report any concerns.
Corporate Real Estate has overall responsibility for setting
global health and safety policies and standards. Achieving
these policies and standards is the responsibility of each
country’s Chief Operating Officer. A global programme in
2015 involved the review of 1,850 premises in high and
medium risk earthquake zones resulting in training and
awareness for staff and the development of risk reduction
programmes.
In terms of physical and geopolitical risk, Global Security
and Fraud Risk provides regular security risk assessments
to assist management in judging the level of terrorist and
violent criminal threat. Its regional equivalents conduct
biannual security reviews of all critical Group buildings to
ensure measures to protect our staff, buildings, assets and
information are appropriate to the level of threat. HSBC
remains committed to the effective management of health
and safety and protecting employees, customers and
visitors to HSBC.
Employee health and safety
2015 2014 2013
Number of employee workplace
fatalities – 2
1 –
Accidents involving more than
three days’ absence 110 96 101
All accident rate per 100,000 employees 274 388 355
1 Non-HSBC staff working on HSBC-related activity.
Remuneration policy
The quality and commitment of our employees is
fundamental to our success and accordingly the Board aims
to attract, retain and motivate the very best people. As
trust and relationships are vital in our business our goal is
to recruit those who are committed to making a long-term
career with the Group.
HSBC’s reward strategy supports this objective through
balancing both short-term and sustainable performance.
Our reward strategy aims to reward success, not failure,
and be properly aligned with our risk framework and
related outcomes. In order to ensure alignment between
remuneration and our business strategy, individual
remuneration is determined through assessment
of performance delivered against both annual and long-
term objectives summarised in performance scorecards,
and adherence to the HSBC Values of being ‘open,
connected and dependable’ and acting with ‘courageous
integrity’. Altogether, performance is judged, not only on
what is achieved over the short- and long-term, but also
on how it is achieved, as the latter contributes to the
sustainability of the Group.
The financial and non-financial measures incorporated
in the annual and long-term scorecards are carefully
considered to ensure alignment with the long-term
strategy of the Group.
Employee share plans
Share options and discretionary awards of shares granted
under HSBC share plans align the interests of employees
with the creation of shareholder value. The tables on the
following pages set out the particulars of outstanding
options, including those held by employees working under
employment contracts that are regarded as ‘continuous
contracts’ for the purposes of the Hong Kong Employment
Ordinance. The options were granted at nil consideration.
No options have been granted to substantial shareholders
and suppliers of goods or services, nor in excess of the
individual limit for each share plan. No options were
cancelled by HSBC during the year.
A summary for each plan of the total number of the
options which were granted, exercised or lapsed during
2015 is shown in the following tables. Further details
required to be disclosed pursuant to Chapter 17 of the
Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited are available on our
website at www.hsbc.com/investor-relations/governance/
share-plans and on the website of The Stock Exchange
of Hong Kong Limited at www.hkex.com.hk, or can be
obtained upon request from the Group Company
Secretary, 8 Canada Square, London E14 5HQ. Particulars
of options held by Directors of HSBC Holdings are set out
on page 314.
Note 6 on the Financial Statements gives details of share-based
payments, including discretionary awards of shares granted under
HSBC share plans.
All-employee share plans
HSBC operates all-employee share option plans under
which options are granted over HSBC ordinary shares.
Subject to leaver provisions, options are normally
exercisable after three to five years. During 2015, options
were granted at the middle market closing price for HSBC
Holdings ordinary shares quoted on the London Stock
Exchange which, as derived from the Daily Official List on
21 September 2015, the day prior to grant, was £4.95.
The all-employee share option plans will terminate on
23 May 2025 unless the Directors resolve to terminate the
plans at an earlier date. There will be no further grants
under the HSBC Holdings Savings-Related Share Option
Plan: International.
The HSBC International Employee Share Purchase Plan was
introduced in 2013 and now includes employees based in
25 jurisdictions.
Further information on the Group’s approach to remuneration is
given on page 285.