HSBC 2015 Annual Report Download - page 370

Notes on the Financial Statements (continued)
6 – Employee compensation and benefits / 7 – Auditors’ remuneration / 8 – Tax
HSBC HOLDINGS PLC
368
Actuarial assumption sensitivities
The effect of changes in key assumptions on the principal plan
HSBC Bank (UK) Pension Scheme
2015 2014
$m $m
Discount rate
Change in pension obligation at year-end from a 25bps increase (1,107) (1,420)
Change in pension obligation at year-end from a 25bps decrease 1,180 1,523
Change in 2016 pension cost from a 25bps increase (58) (75)
Change in 2016 pension cost from a 25bps decrease 55 73
Rate of inflation
Change in pension obligation at year-end from a 25bps increase 747 1,026
Change in pension obligation at year-end from a 25bps decrease (855) (1,184)
Change in 2016 pension cost from a 25bps increase 28 44
Change in 2016 pension cost from a 25bps decrease (31) (48)
Rate of increase for pensions in payment and deferred pensions
Change in pension obligation at year-end from a 25bps increase 990 1,188
Change in pension obligation at year-end from a 25bps decrease (937) (1,127)
Change in 2016 pension cost from a 25bps increase 37 50
Change in 2016 pension cost from a 25bps decrease (34) (45)
Rate of pay increase
Change in pension obligation at year-end from a 25bps increase 119 237
Change in pension obligation at year-end from a 25bps decrease (119) (232)
Change in 2016 pension cost from a 25bps increase 4 12
Change in 2016 pension cost from a 25bps decrease (4) (11)
Mortality
Change in pension obligation from each additional year of longevity assumed 670 768
HSBC Holdings
Employee compensation and benefit expense in respect of HSBC Holdings’ employees in 2015 amounted to $908m (2014:
$681m). The average number of persons employed during 2015 was 2,656 (2014: 2,070). Employees who are members of
defined benefit pension plans are principally members of either the HSBC Bank (UK) Pension Scheme or the HSBC International
Staff Retirement Benefits Scheme. HSBC Holdings pays contributions to such plans for its own employees in accordance with
the schedules of contributions determined by the trustees of the plans and recognises these contributions as an expense as
they fall due. During 2015, most employees were transferred to the ServCo group (see page 242). Their remuneration and
numbers have been included in the narrative above as they have been seconded back to HSBC Holdings on an interim basis.
Directors’ emoluments
Details of directors’ emoluments, pensions and their interests are disclosed in the Director’ Remuneration Report on page 318.
7 Auditors’ remuneration
2015 2014 2013
$m $m $m
Audit fees payable to PwC/KPMG1 62.0 40.6 43.4
Other audit fees payable 1.2 1.2 1.1
Year ended 31 December 63.2 41.8 44.5
1 PwC became the Group’s principal auditor in 2015. KPMG was the principal auditor during 2014.
The following fees were payable by HSBC to the Group’s principal auditor:
Fees payable by HSBC to PwC/KPMG1
2015 2014 2013
$m $m $m
Fees for HSBC Holdings’ statutory audit2 13.1 13.4 12.9
–
relating to current year 13.1 13.4 12.6
–
relating to prior year
–
–
0.3
Fees for other services provided to HSBC 85.1 62.5 67.5
Audit of HSBC’s subsidiaries3 48.9 27.2 30.5
Audit-related assurance services4 16.6 22.6 27.4
Taxation-related services:
–
taxation compliance services 1.0 1.5 1.3
–
taxation advisory services 0.9 0.8 1.3
Other assurance services5 2.8 0.7 0.5
Other non-audit services5 14.9 9.7 6.5
Year ended 31 December 98.2 75.9 80.4
1 PwC became the Group’s principal auditor in 2015. KPMG was the principal auditor during 2014.