Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 452

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 452
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, where required by the relevantregulations, at least 50% of the deferred award is linked to fund units reflective of fundsmanaged by those entities, with the remaining portion in deferred cash awards.–Variable pay awards made in HSBC shares or linked to relevant fund units granted to MRTs aregenerally subject to a one-year retention period post-vesting.–MRTs who are subject to a five-year deferral period, except senior management or individuals inPRA- and FCA-designated senior management functions, have a six-month retention periodapplied to their awards.–Where an employee is subject to more than one regulation, the requirement specific to thesector and/or country in which the individual is working is applied. | –All of the LTI award, or at least60% of the total variableaward (including LTI), isdeferred. The deferred awardswill vest in five equal annualinstalments, with the firstvesting on or around the thirdanniversary of the grant dateand the last instalment vestingon or around the seventhanniversary of the grant date.–All deferred awards are inHSBC shares and subject to apost-vesting retention periodof one year. |
| Severance paymentsAdhere to contractualagreements with involuntaryleavers.                                                                                                                            | –Where an individual’s employment is terminated involuntarily for gross misconduct then,subject to compliance with local laws, the Group’s policy is not to make any severancepayment and all outstanding unvested awards are forfeited.–For other cases of involuntary termination of employment, the determination of anyseverance will take into consideration the performance of the individual, contractual noticeperiod, applicable local laws and circumstances of the case.–Generally, for good leavers, all outstanding unvested awards will normally continue to vest inline with the applicable vesting dates. Where relevant, any performance conditions attached tothe awards, and malus and clawback provisions, will remain applicable to those awards.–Severance amounts awarded to MRTs are not considered as variable pay for the purpose ofapplication of the deferral and variable pay cap rules under the PRA and FCA remuneration ruleswhere such amounts include: (i) payments of fixed remuneration that would have been payableduring the notice and/or consultation period; (ii) statutory severance payments; (iii) paymentsdetermined in accordance with any approach applicable in the relevant jurisdictions; and (iv)payments made to settle a potential or actual dispute.