Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 442

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 442
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 of the policy should be easy to understand and transparent. – There should be a strong alignment between reward and the interests of our stakeholders, including shareholders, customers and employees. – The policy should maintain a focus on long-term performance. – Total remuneration should be competitive to ensure we can retain and attract talent to deliver our strategic priorities. – The structure should meet the expectations of investors and our regulators. Setting the policy The Committee reviewed the Director’s remuneration policy in the context of significant regulatory change following removal of the 2:1 variable to fixed pay ratio. Input was received from the Group Chairman and management while ensuring that conflicts of interest were suitably mitigated. Input was provided by the Committee’s appointed independent advisers throughout the process. Key changes to the policy as a result of this review include: – removal of Fixed Pay Allowances. – an increase in the maximum opportunity of the annual and long- term incentives. – an increase in shareholding guidelines and the introduction of a post-cessation shareholding guideline. We extensively engaged with major shareholders, representing 65% of those who voted at the 2024 AGM, and proxy advisory bodies. The Committee carefully considered all feedback received, which has directly influenced the final proposal. Full detail on the context for the review, the Committee's key considerations, including how the Committee has responded to shareholder feedback, is provided in the Chair's letter on pages 309 to 314 . Remuneration policy at a glance This section sets out the key changes in our Directors’ remuneration policy and our proposed implementation for 2025.

| Policy structure       |                                               |
| Total remuneration mix | Maximum total remuneration opportunity (£000) |

28% 42%

| CEOCurrent1      |
| CFOCurrent1      |
| CEO/CFOProposed1 |

13% 16% 10% 30% 59% 13% 17% 28% 41% 1 Pension accounts for 1% of the total remuneration mix.

| CEOCurrent  |
| CEOProposed |
| CFOCurrent  |
| CFOProposed |

| Fixed pay - 2025 implementation (£000) |          |
| Georges Elhedery                       | Pam Kaur |

| Current  |
| Proposed |

| Current  |
| Proposed |

| Variable pay                 |                                 |                          |           |
| Annual incentive opportunity | Long-term incentive opportunity | Shareholding requirement |           |
|                              |                                 | Group CEO                | Group CFO |

|