Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 434

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 434
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 represents a material change in structure and quantum, but this will only be realised if stretching performance targets are met and value is delivered for shareholders. The Committee has undertaken a comprehensive review of the performance measures used for our incentive arrangements to ensure alignment to the Group’s priorities and balance delivery of financial and strategic performance. Performance targets and ranges have been set with stretch to reflect the increased pay opportunities. This topic has been a strong focus of policy discussions with shareholders and their views are reflected in our decisions. For the 2025 annual incentive scorecard, we will: – Retain our core measures of PBT, Group RoTE and costs, each assessed excluding notable items, and introduce a measure on fee income growth relative to balance sheet growth to incentivise growth with less reliance on capital.

| 312 | HSBC Holdings plcAnnual Report on Form 20-F |

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

– Reduce the weighting for PBT to 10% and remove Asia RoTE to reduce overlap with Group RoTE and simplify the scorecard. This change retains financial measures at 60% of the scorecard, which the Committee believes appropriately balances investor views with regulatory expectations for a balanced scorecard. – Maintain customer Net Promoter Score as a strategic measure to reflect our ambition to be a top-three bank for customer satisfaction and/or improve customer satisfaction rank. – Include people and culture measures that support us in strengthening our inclusive culture of high-performance. For the 2025–2027 LTI, we will: – Retain Group RoTE, relative total shareholder return ( ’ TSR ’ ) and environment measures. – Increase the weighting of RoTE to 40% , r eflecting that the delivery of a strong stable return on tangible equity is a core measure of the sustainable returns expected by our investors. – Increase the weighting of relative TSR to 40% as it is a key measure of shareholder returns, a material relative measure used by our peers and in line with investor expectations. – Reduce the weighting of the environment measure from 25% to 20% following feedback from our shareholders on the metrics and targets used given the higher LTI opportunity, recognising that f inanced emissions targets remain difficult to include at this time . This ensures a greater proportion of the scorecard is aligned to value creation while supporting our ESG ambitions. We will not use financed emission targets for the 2025-2027 LTI awards given current challenges in methodology and the timeliness and frequency of reporting, which was