Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 461

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 461
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ens RoTE over the medium term.

– The minimum target for relative TSR is set ‘at the median of our

peer group’, which ensures no payout for below median

performance aligned to investor expectations. The maximum is set

‘at the upper quartile of our peer group’.

– Our emissions reduction targets have been set based on meeting

our forecasts relating to emissions reduction and purchase of

renewable energy.

– For the sustainable finance and investment measure, we have set

performance targets to support our ambition announced in 2020 to

provide $ 750b n to $ 1t n of financing and investment by 2030. We

reflected on sustainable financing forecasts, market demand, and

regulation, as well as higher LTI opportunity in setting the stretch

in the target range.

The LTI is subject to a risk and compliance modifier, which gives the

Committee the discretion to ensure performance targets are delivered

with appropriate risk management.

Consistent with our approach since 2017, the number of shares to be

awarded will be adjusted to reflect the expected dividend yield of the

shares over the vesting period, as awards are not entitled to dividend

equivalents in accordance with regulatory requirements.

To the extent performance conditions are satisfied at the end of the

three -year performance period, the awards will vest in five equal

annual instalments commencing from around the third anniversary of

the grant date. On vesting, shares equivalent to the net number of

shares that have vested (after those sold to cover any income tax and

social security payable) will be held for a retention period of up to one

year, or such period as required by regulators.

| Performance conditions for the 2025–2027LTI awards                                                                                                                                                                                    |                                 |                                |                                                  |                                        |
| Measures (weighting)1                                                                                                                                                                                                                 |                                 | Minimum(25% payout)            | Target(50% payout)                               | Maximum(100% payout)                   |
| RoTE (excluding notable items) with CET1 capital ratiounderpin2(40%)                                                                                                                                                                  |                                 | 14.0%                          | 16.0%                                            | 18.0%                                  |
| Relative TSR3(40%)                                                                                                                                                                                                                    |                                 | At the median of thepeer group | Straight-line vesting betweenminimum and maximum | At the upper quartile of thepeer group |
| Environment4(20%)                                                                                                                                                                                                                     | Carbon reduction (ownemissions) |