Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 447

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 447
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modifier/underpin                        | Example measures for annual incentive scorecard                                                                                                                                                                                                                                                                                                                                                        | Example measures forLTI scorecard                                       | Rationale                                                                                                                                                                |
| Financial measures                                   | –Profit before tax–RoTE–Revenue growth–Volume growth–Costs                                                                                                                                                                                                                                                                                                                                             | –RoTE–Total shareholder return–Underpin to maintain aminimum CET1 ratio | Measures are selected toincentivise the achievementof our financial targets as setout in our strategic prioritiesand financial resource plan.                            |
| Strategic measures                                   | –Customer satisfaction–Employee engagement–Succession planning and inclusion–Carbon reduction and sustainable finance                                                                                                                                                                                                                                                                                  | –Reduce carbonemissions–Sustainable finance                             | Measures are selected tosupport the delivery of ourstrategic priorities.                                                                                                 |
| Risk and compliancemeasures, modifierand/or underpin | –Sustained delivery of global conduct outcomes–Effective financial crime risk management–Effective management of material operational risks–Risk metrics to identify when business activities are outside of tolerancelevel for a significant period of time–Failures in risk management that have resulted in significant customerdetriment, reputational damage and/or regulatory censure–CET1 level | –Modifier linked to riskand complianceperformance                       | Measures are chosen toensure a high level ofaccountability of risk andconduct, to promote aneffective risk managementenvironment and to embed arobust governance system. |

| 320 | HSBC Holdings plcAnnual Report on Form 20-F |

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

Approach to recruitment remuneration – executive Directors On the recruitment or appointment of a new executive Director, the Committee would adhere to the following principles: – Remuneration packages should be in line with the approved policy for executive Directors. – Remuneration packages must meet any applicable local regulatory requirements. – Where necessary, compensation may be provided in respect of forfeiture of remuneration awards from an existing employer (for example, buy-out awards). Outlined in the following table are all components that would be considered for inclusion in the remuneration package of a new executive Director appointment and, for each, the approach that would be adopted. In the case of an internal appointment, any existing commitments will be honoured and any variable element awarded in respect of the prior role will be allowed to be paid out according to its existing terms.

| Components of remuneration package of a new executive Director |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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