HSBC 2015 Annual Report Download - page 307

HSBC HOLDINGS PLC
305
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Single figure of remuneration
Executive Directors
(Audited)
Douglas Flint Stuart Gulliver Iain Mackay Marc Moses
2015 2014 2015 2014 2015 2014 2015 2014
£000 £000 £000 £000 £000 £000 £000 £000
Fixed pay
Base salary 1,500 1,500 1,250 1,250 700 700 700 700
Fixed pay allowance
–
–
1,700 1,700 950 950 950 950
Pension 750 750 625 625 350 350 350 350
2,250 2,250 3,575 3,575 2,000 2,000 2,000 2,000
Variable pay
Annual incentive
–
–
1,072 1,290 1,068 867 827 1,033
GPSP
–
–
1,969 2,112 1,101 1,131 1,101 1,131
–
–
3,041 3,402 2,169 1,998 1,928 2,164
Total fixed and variable pay 2,250 2,250 6,616 6,977 4,169 3,998 3,928 4,164
Benefits 151 136 662 589 54 43 6 6
Non-taxable benefits 95 105 53 53 28 28 29 33
Notional return on deferred cash
–
41 9
–
511 5 36
Total single figure of remuneration 2,496 2,532 7,340 7,619 4,256 4,080 3,968 4,239
Notes to the single figure of remuneration
(Audited)
Base salary
• Salary paid in year for executive Directors. No fees were paid to executive Directors.
Fixed pay allowance
• Fixed pay allowance granted in immediately vested shares in the year for executive Directors.
• The shares are subject to a retention period. 20% released in the March immediately following the end of the financial year. 80% released
after a period of five years from the date of the first release.
• Dividends will be paid on the vested shares held during the retention period.
Pension
• The amounts consist of an allowance of 50% of annual base salary in lieu of personal pension arrangements.
• No other benefits were received by the executive Directors from the Group pension plans.
Benefits
• All taxable benefits (gross value before payment of tax). Benefits include provision of medical insurance, accommodation and car,
club membership, tax gross-up for accommodation and car benefit, and car allowance.
• Non-taxable benefits include the provision of life assurance and other insurance cover.
The values of the significant benefits in the above table were as follows:
Douglas Flint Stuart Gulliver Iain Mackay Marc Moses
2015 2014 2015 2014 2015 2014 2015 2014
£000 £000 £000 £000 £000 £000 £000 £000
Car benefit (UK and Hong Kong) 69 70 87 88
–
1
–
1
–
1
–
Hong Kong bank-owned
accommodation2 – – 281 246 – – – –
Tax expense on car benefit and
Hong Kong bank-owned
accommodation 57 58 275 239 –
1–1 – 1 –
Insurance benefit (non-taxable) 80 80
–
1
–
1
–
1
–
1
–
1
–
1 The car benefit and tax on car benefit for Iain Mackay and Marc Moses is not included in the above table as it was not significant. The insurance
benefit for Stuart Gulliver, Iain Mackay and Marc Moses is not included in the above table as it was not significant.
2 Based on the current market rental value of the bank-owned property in Hong Kong, as estimated by an external lease service provider, plus utility
costs, rates, the taxable value of furniture and taking into account the business use of the property. The taxable value of the accommodation is
considered to be 70% of the total of these amounts.
Annual incentive
• Annual incentive awarded (including deferred amounts) as a result of achievement of performance measures for the relevant financial year.
60% of the award is deferred. 50% of both the deferred and non-deferred component of the award is payable in cash and the remaining
50% in shares, subject to a six-month retention period on vesting.
• The deferred element of the 2015 award pays out over a period of three years, subject to service and malus conditions: 33% vests on or
around the first and second anniversary of grant and 34% on or around the third anniversary of grant. For the 2015 award the performance
measures and the outcomes of the performance conditions can be found on page 307. Outcomes for the 2014 award can be found in the
Directors’ Remuneration Report in the Annual Report and Accounts 2014.