Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 451

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 451
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 made for the majority of colleagues in the relevant jurisdiction. – All colleagues are eligible to be considered for an annual incentive awar d based on their overall performance assessment, which considers performance against goals and role expectations, and demonstration of our values-aligned behaviours. The variable pay for all colleag ues, including executive Directors, is funded from a Group variable pay pool that is determined with reference to Group performance. Colleagues who receive a variable pay award above a certain level have a portion of their award deferred over a period of three to seven years, or other period as required by regulators. – LTI awards are considered for senior management, given their ability to directly influence the Group's long-term performance. The Board gathers views from our colleagues through a number of engagement channels. Our management engages with colleagues, either on a Group-wide basis or in the context of smaller focus groups, to solicit feedback generally on a wide range of matters, including pay. Our annual survey on pay seeks the views of all colleagues on their performance and pay outcomes. The Committee reviews the outcomes of the survey and determines the key remuneration priorities for the forthcoming year. Whilst we have not explicitly sought the views of colleagues on the new policy, many of our colleagues are also shareholders and therefore have the opportunity to vote on the policy at the 2025 AGM. As part of our annual calendar, the Committee Chair also hosts a forum attended by the chairs of our principal subsidiary boards and remuneration committees. This allows the Committee to understand local market factors and feedback gathered from colleagues, within the regions where we operate, on pay and performance matters. This also helps both management and the Committee to determine the prioritisation of pay budgets, and allows the Committee to ensure that funding is directed to the areas of need in support of the Group’s strategic ambitions.

| HSBC Holdings plcAnnual Report on Form 20-F | 325 |

Remuneration structure for colleagues We set out below the key features of our remuneration framework, which applies on a Group-wide basis, subject to compliance with local laws:

| Remuneration componentsand objectives                                                                                                                                                                 | Application for Group employees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Approach for executiveDirectors                                                                                                                                                                                                                                                                                                                                                                                            |
| Fixed payAttract and retain colleagueswith market competitive payfor the role, skills andexperience required.                                                                                         | –Fixed pay may include base salary, fixed pay allowances, cash in lieu of pension and other cashallowances in accordance with local market