Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 444

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 444
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 to both annualincentive and LTI)                                                                                                                                                                                                                                                                                                                                                         | The Committee has the discretion to operate malus and clawback provisions.Malus can be applied to unvested awards in circumstances including:–detrimental conduct, including conduct that brings the business into disrepute;–past performance being materially worse than originally reported;–restatement, correction or amendment of any financial statements; and–improper or inadequate risk management.Clawback may be applied in circumstances including:–participation in, or responsibility for, conduct that results in significant losses;–failing to meet appropriate standards and propriety;–reasonable evidence of misconduct or material error that would justify, or would have justified, summary termination of a contractof employment;–a material failure of risk management suffered by HSBC or a business unit in the context of Group risk management standards,policies and procedures; and–any other circumstances required by local regulatory obligations to which any member of the HSBC Group or its subsidiary issubject.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| 318 | HSBC Holdings plcAnnual Report on Form 20-F |

Report of the Directors | Corporate governance report | Directors’ remuneration report

| Elements                    
 Long-term incentives(‘LTI’) 
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 To incentivise sustainable long-term performance and alignment with shareholder interests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 LTI awards are discretionary and are granted if the Committee considers that there has been satisfactory performance over the prioryear. The awards are granted as rights to receive shares under the HSBC Share Plan, normally subject to a forward-looking three-yearperformance period from the start of the financial year in which the awards are granted.At the end of the performance period, the performance outcome will be used to assess the percentage of the awards that will vest.These shares will then normally vest in five equal instalments, with the first vesting on or around the third anniversary of the grantdate and the last instalment vesting on or around the seventh anniversary of the grant date, in accordance with current UKremuneration rules.On each vesting, shares equivalent to the net number of shares that vested (after those sold to cover any income tax and socialsecurity payable) must be held for a retention period up to one year (or