Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 433

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 433
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 over the last 10 years been applied to our 2014 maximum opportunities. Compared to our international banking peers, the maximum pay opportunities place HSBC second amongst our European peers, and behind all comparable US roles. The Committee believe this is appropriate given HSBC is one of the largest banking and financial services organisations in the world, which is listed in the UK, whilst recognising the different pay environment in the US. The Committee also reflected on the challenges of pay compression between the executive Directors and members of the Group Operating Committee in the context of succession planning, and considering pay outcomes and market benchmarks for each role. From 2021 to 2023, the expected total compensation of nearly a third of Group Executive Committee members was higher by on average 30% than the Group CFO. The proposed maximum opportunity for the Group CFO helps to restore the pay differential expected by the market versus other senior roles, albeit a gap still remains. 2025 fixed pay To achieve the increased maximum pay opportunity, base salary for Georges Elhedery will increase to £1,500,000 , up 9% . Whilst this is higher than the average 2025 fixed pay increase of 2.9% for UK employees, overall fixed pay for Georges will reduce by 49% following removal of his FPA. Georges’ proposed salary remains behind the level we would expect had average UK wider workforce salary increases of 4% been applied since 2014, when the 2:1 cap was introduced. The average annual HSBC Group CEO salary increase over the same period was 1% . Evolution of Group CEO salary over time (£000) We considered higher base salaries given the significant reduction in fixed pay but elected to keep the base salary increase lower, recognising wider cost of living challenges faced by colleagues and customers. This was a view shared by shareholders and reflects our disciplined approach to executive pay. For Pam Kaur, base salary will increase to £875,000 , up 9% . This enables a maximum pay opportunity reflecting the scale and complexity of the Group CFO role at HSBC and limits pay compression with comparable roles on our Group Operating Committee. Similar to Georges, though Pam’s salary increase is above the average fixed pay increase for UK employees, her overall fixed pay will reduce by 51% following removal of the FPA. Subject to shareholder approval of the remuneration policy, salary increases for both Georges and Pam will be effective from 1 March 2025, in line with the UK workforce. Performance measures and targets Our proposal