Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 466

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 466
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 ceiling recognises that at higher levels of performance it is not always necessary to continue toincrease variable pay, thereby limiting the risk of inappropriate behaviour to drive financial performance.–The main quantitative and qualitative performance and risk metrics used for assessment of performance include:–Group and business unit financial performance, considering contextual factors driving performance, and capital requirements;–current and future risks, taking into consideration performance against the risk appetite, financial resourcing plan and global conductoutcomes; and–fines, penalties and provisions for customer redress, which are automatically included in the Committee’s definition of profit fordetermining the pool.–In the event that the Group was unable to distribute dividends to shareholders for reasons such as capital adequacy, then the Group maydetermine that as a year of weak performance. In such a year, the Group may withhold some, or all, variable pay for employees includingunvested share awards, using the metrics outlined above as a basis for that determination. |
| Individualperformance                         | –Assessment of individual performance is made with reference to clear and relevant financial and non-financial goals. Goals for seniormanagement take into account appropriate measures linked to sustainability risks, such as: reduction in carbon footprint; facilitating financingto help clients with their transition to net zero; employee inclusion; and risk and compliance measures, subject to local legal requirements.–A mandatory global risk and compliance goal is included for all other employees. Subject to any legal/regulatory requirements, all employeesreceive an overall performance assessment supported by an assessment against the minimum values-aligned behaviours and conductstandards expected of all colleagues and performance on their goals. This ensures that performance is assessed not only on what is achievedbut also on how it is achieved.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Controlfunction staff                         | –Group policy is for control functions staff to report into their respective function. Remuneration decisions for senior functional roles are madeby the global function head.–The performance and reward of individuals in control functions, including risk and compliance colleagues, are assessed according to a balancedscorecard of goals specific to the functional role they undertake.–Their remuneration is determined independent of the performance of the business areas they oversee.–Remuneration is carefully benchmarked with the market and internally to ensure it is set at an appropriate level.–The Committee is responsible for approving remuneration for the Group Chief Risk and Compliance Officer and Group Head of Internal Audit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Variable payadjustmentsand conductrecognition | –Variable pay awards may be adjusted upwards