HSBC 2008 Annual Report Download - page 376

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 8 and 9
374
Summary
2008 2007 2006 2005 2004
US$m US$m US$m US$m US$m
Defined benefit obligation ..................................... (839) (1,038) (1,106) (1,004) (982)
Fair value of plan assets ........................................ 128 146 133 107 79
Net deficit .............................................................. (711) (892) (973) (897) (903)
Experience gains/(losses) on plan liabilities ......... (34) 15 (12) 19 (15)
Experience gains/(losses) on plan assets ............... (14) (6) (1) 1 –
Gains/(losses) from changes in actuarial assumptions
............................................................................ 32 94 (25) (63) 20
Total net actuarial gains/(losses) ........................... (16) 103 (38) (43) 5
Actuarial gains and losses represent experience adjustments on plan assets and liabilities as well as adjustments
arising from changes in actuarial assumptions. Total cumulative net actuarial gains recognised in equity at
31 December 2008 were US$11 million (2007: gains of US$27 million).
The actuarial assumptions of the healthcare cost trend rates have a significant effect on the amounts recognised. A
one percentage point change in assumed healthcare cost trend rates would have the following effects on amounts
recognised in 2008:
2008 2007
1% increase 1% decrease 1% increase 1% decrease
US$m US$m US$m US$m
Increase/(decrease) of the aggregate of the current
service cost and interest cost .................................... 9 (7) 14 (10)
Increase/(decrease) of defined benefit obligation ........ 77 (62) 110 (100)
HSBC Holdings
Employee compensation and benefit expense in respect of HSBC Holdings’ employees in 2008 amounted to
US$218 million (2007: US$257 million). The average number of persons employed by HSBC Holdings during 2008
was 730 (2007: 595).
Employees of HSBC Holdings 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 plans in accordance with schedules determined by the Trustees following consultation
with qualified actuaries.
Directors’ emoluments
The aggregate emoluments of the Directors of HSBC Holdings, computed in accordance with Part I of Schedule 6 of
the Companies Act 1985, were:
2008 2007 2006
US$000 US$000 US$000
Fees .................................................................................................................. 2,529 2,626 2,660
Salaries and other emoluments ........................................................................ 11,584 7,929 7,774
Bonuses ............................................................................................................ – 8,938 10,705
14,113 19,493 21,139
Gains on the exercise of share options ............................................................ 23 13 3
Vesting of Long-Term Incentive awards ......................................................... 7,147 4,563 18,975
In addition, there were payments under retirement benefit agreements with former Directors of US$1,139,968 (2007:
US$1,183,960). The provision at 31 December 2008 in respect of unfunded pension obligations to former Directors
amounted to US$15,164,791 (2007: US$18,491,117).
During the year, aggregate contributions to pension schemes in respect of Directors were US$664,174 (2007:
US$545,854 which included US$460,564 arising from a Director’s waiver of bonus).