HSBC grants conditional share awards to directors and staff

Published 09/05/2025, 09:34
©  Reuters

LONDON - HSBC Holdings (NYSE:HSBC) PLC (LSE:HSBA) has granted conditional awards for nearly 3 million shares to its directors, employees, and former employees under its Share Plan 2011, as per the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited.

On Monday, the bank awarded 2,936,123 ordinary shares of US$0.50 each at no cost to the recipients. The awards are part of a long-term incentive plan (LTI) that will vest over several years. For directors Georges Elhedery and Manveen (Pam) Kaur, the awards will vest in five equal annual installments starting from the third anniversary of the grant date, with a subsequent 12-month retention period for each vesting.

The LTI awards are tied to specific performance conditions, including return on tangible equity (RoTE) with a Common Equity Tier 1 (CET1) underpin, environmental targets, and relative total shareholder return (TSR). The company’s clawback policy, aligned with regulatory obligations, applies to these awards.

Employees and former employees were granted 770,313 shares, with vesting periods varying according to their roles and the nature of their compensation, including immediate vesting in some cases with retention periods. The awards are part of deferred bonuses meant to meet UK regulatory requirements, with performance targets attached to the initial variable pay rather than the awards themselves.

HSBC’s announcement also detailed the remaining share availability under the plan mandate, with limits set at 10% and 5% of the ordinary share capital of the company.

The bank has made it clear that no financial assistance will be provided to the grantees for these awards. This move comes as part of HSBC’s strategy to align directors’ and employees’ interests with those of the shareholders and to comply with regulatory remuneration requirements.

The information is based on a press release statement made to The Stock Exchange of Hong Kong Limited and does not include any marketing content or promotional language.

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