Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 49

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 49
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 details of our climate ambition and carbon emission metrics, see the ESG review on page 39 .

| Group non-financial and sustainabilityinformation statementThis section primarily covers Group non-financial and sustainability information asrequired by applicable regulations. Otherrelated information can be found as follows:For further details of our key performanceindicators, see page4.For further details of our business model, seepage7.For further details of our principal risks andhow they are managed, see pages36to38.For further details of our TCFD disclosures,including alignment with sections 414CA and414CB of the Companies Act 2006, see pages466to472. |

| HSBC Holdings plcAnnual Report on Form 20-F | 23 |

Remuneration Our remuneration policy supports the achievement of our strategic objectives by aligning reward with our long-term sustainable performance.

Remuneration for our executive Directors At the 2025 Annual General Meeting (‘AGM’), we will be seeking shareholder approval for a new executive Director remuneration policy. Over several years, the Group Remuneration Committee has expressed concerns around the competitiveness of the executive Director remuneration opportunity and indicated a preference to operate a policy with a higher proportion of the package based on variable pay linked to performance, aligned to practice among our international peers. The removal of the limits on the ratio between fixed and variable pay by the UK regulators provides an opportunity to revisit our current Directors’ remuneration policy and the Committee feels that now is the right time to set a policy that better reflects the Group’s focus on long-term sustainable performance. After careful consideration, the Committee concluded that the current variable pay framework of an annual incentive and single performance-based long-term incentive is most appropriate. The Committee considered the right approach is to unwind the changes made in 2014, when the 2:1 pay ratio was introduced and to reset the maximum opportunity. The Committee reflected on the appropriate maximum opportunity for the Group CEO and Group CFO considering (i) the maximum opportunity in 2014; (ii) market data for our international banking peers and the largest FTSE 30 companies, reflecting that HSBC is one of the world’s leading international banks; and (iii) compression challenges within the senior HSBC team. We will continue to set a scorecard of stretching and quantitative financial and strategic performance targets aligned to our strategy and stakeholder interests. Maximum pay outcomes will be delivered only for exceptional performance as required by these targets. The Committee engaged with major investors on the new remun