Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 440

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 440
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 to review the UK remuneration rules to improve overall competitiveness of UK capital markets. We have introduced a degree of flexibility into our policy to ensure it remains competitive against peers once the final rules are known. Any changes made would always be in line with the key principles used by the Committee when setting the policy. We would engage with major shareholders ahead of making any material changes, and provide clear and comprehensive disclosure in our Annual Report and Accounts . We remain supportive of the use of deferral mechanisms and will continue to deliver a substantial portion of variable pay in shares to ensure alignment between shareholder interests, good risk management and individual reward. Our policy commits to a weighted average time horizon of at least five years for the deferral period of LTI awards, in line with UK Corporate Governance requirements.

| 314 | HSBC Holdings plcAnnual Report on Form 20-F |

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

Plan limits under Share Plan 2011 The rules of the HSBC Share Plan 2011 currently include an annual individual limit on awards of 600% of salary, based on the market value of shares. LTI awards are not eligible to receive dividend equivalents to comply with regulatory requirements. Consistent with our disclosed practice since 2017 when the regulatory change came into force, the number of shares awarded is calculated using a share price discounted for the expected dividend yield over the vesting period. The market value of the proposed LTI award would therefore exceed 600% of base salary. Amending this limit to reflect the fair value of shares (defined in accordance with relevant accounting standards) will enable the Committee to grant up to the maximum award under the new policy. Shareholder support for this change will be sought at the 2025 AGM. Conclusion On behalf of the Committee, I would like to thank our shareholders for the time taken to engage with us and their valuable feedback as we developed our new policy. We are committed to regular engagement and I look forward to further dialogue in the year ahead. As Chair of the Committee, I hope you will support the 2024 Directors’ remuneration report, our new Directors’ remuneration policy and the amendment to plan limits under Share Plan 2011 at this year's AGM. Dame Carolyn Fairbairn Chair Group Remuneration Committee 19 February 2025

2024 executive remuneration at a glance This section sets out an overview of our performance and 2024 remuneration outcomes for executive Directors. Our performance