HSBC 2015 Annual Report Download - page 287

HSBC HOLDINGS PLC
285
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Directors’ Remuneration
Report Page App1
Annual Statement from the Group
Remuneration Committee Chairman 285
Group performance in 2015 285
Group variable pay pool and risk adjustments 286
How our remuneration policy was applied in 2015 286
New remuneration policy for 2016 287
Looking ahead to 2016 287
Directors’ remuneration policy 288
Material factors taken into account when setting
pay policy 288
Remuneration policy – executive Directors 289
Remuneration policy – non-executive Directors 299
Remuneration policy for all employees 300
Link between pay and performance 300
Adjustment, malus and clawback 301
Annual report on remuneration 302
Remuneration Committee 302
Group variable pay pool 303
Single figure of remuneration 305
Determining executive Directors’ annual
performance 307
Awards under the GPSP 310
Non-executive Directors 311
Payments to past Directors 311
Total pension entitlements 312
Exit payments made in year 312
Scheme interests awarded during 2015 312
Summary of performance 312
CEO remuneration 313
Directors’ interests in shares 314
Shareholder context 315
Implementation of remuneration policy in 2016
for executive Directors 315
Annual bonus scorecards 315
Implementation of remuneration policy for
non-executive Directors 317
Additional disclosures 318
Employee compensation and benefits 318
Pillar 3 remuneration disclosures 319
1 Appendix to Directors’ Remuneration Report.
All disclosures in the Directors' Remuneration Report are unaudited
unless otherwise stated.
Disclosures marked as audited should be considered audited in the
context of financial statements taken as a whole.
Annual Statement from the
Group Remuneration
Committee Chairman
Dear Shareholder,
This report sets out HSBC’s remuneration policy for
executive Directors, what we paid our Directors in 2015
and why.
This is my first year as Group Remuneration Committee
(the ‘Committee’) Chairman, although I have been a
member since 30 May 2008.
I have set out below how the Group has performed during
2015, how the remuneration policy was applied in
determining the remuneration outcome for our executive
Directors, and the new remuneration policy we are putting
forward for shareholder approval to give effect to the new
Remuneration Rules of the PRA and, to the extent we can
at this stage, the new European Banking Authority (‘EBA’)
guidelines.
Group performance in 2015
Management laid out its strategy in June 2015, which
sets out the plan to reshape our business, capture future
growth opportunities and adapt to structural changes in
the operating environment. Delivering these strategic
objectives will create value for our customers and
shareholders and contribute to the long-term sustainability
of HSBC. Our executives are focused on delivering on these
strategic objectives.
Although adjusted profit before tax fell in 2015, we
strengthened our capital position and increased our
dividends per ordinary share. We also increased our
revenue and, although operating expenses increased
from 2014, we made progress in implementing our cost
reduction programmes and cost growth slowed in the
second half of the year.
Return on equity (%)
Adjusted profit before tax ($bn)
7.2
7.3
9.2
2015
2014
2013
6.8
8.2
8.7
0.5
(3.9)
RBWM
CMB
GB&M
GPB
Other