At HSBC, we believe our primary competitive advantage comes from
our employees. It is their ability to provide a superior customer
experience to our customers, that sets us apart from other
financial services companies. In the ever changing financial
services industry, all of us must continuously upgrade our skills
and knowledge in order to maintain this competitive advantage. Our
goal is to attract, retain and motivate the very best, and to do
that we support training, development, and business education
through the following: Internal Training ProgrammesSeminars,
workshops and locally tailor made training on a variety of topics
are offered directly by HSBC Training and Development Department at
our training centre located at Motijheel.External CoursesJob
related courses, seminars, workshops and conferences developed and
presented at HSBC Offices in Asia and also at Group Training and
Management Development Centre at Bricketwood, UK.Distance
LearningWeb-based and multimedia self-study programmes available
through our Intranet and multimedia Learning Centres located in our
HSBC offices.Resident Management Trainee Programme (RMT
Programme)The Resident Management Trainee programme (RMT) aims to
select a group of high potential executive trainees and provide
them training and development opportunities. The RMT programme
gives potential executives effective and systematic training to
acquire an excellent understanding of the commercial operations and
business functions. The RMT programme ensures that successful
applicants, with the right training, will have the ability and
potential to reach the highest level of management within HSBC
Bangladesh, and possibly beyond.
HSBC continually evaluates and reviews its employee benefits to
ensure that benefits are competitive and in line with our employees
needs. Employee benefits include: Market competitive remuneration
package and annual cash bonuses. Health plan and routine medical
allowance including optical and dental treatment. Short and
long-term disability coverage, as well as life insurance. Paid
leave for marriage, maternity, sickness and vacation. Staff banking
privileges, including special interest rates for car loans, sundry
loans and home loans. An active Sports and Social Club. Development
opportunities and career support. Retirement benefits.
We offer our employees a long-term future with training, life
and work experiences to support development to the most senior
levels of management.Find out what our people have to say about
their experiences with HSBC.Laila F RahimManager BranchesHSBC
DhakaMy history with HSBC started with an Internship program, a
requisite for my BBA degree. Since then I have never looked back.
The warm and friendly atmosphere here is what made me decide to
join permanently. Ever since joining, I have worked in all HSBC
offices in Dhaka and Chittagong.My work at Trade Services for two
years as an Assistant Officer gave me the opportunity to gain
knowledge and experience in international trade and commerce. After
consulting with Human Resources regarding my career, I then moved
on to Personal Financial Services to learn more about spotting
customer needs as a Customer Services Officer. This gave me a
perfect chance to grow as a banker as well as contribute to the
business growth of HSBC. After a year and a half, I was selected as
the Banking Support Executive through various aptitude tests and
interviews. Currently I am working as the manager for our Gulshan
Office.I have always found HSBC to have equal opportunities for all
staff. Extensive career counselling for staff at all levels is also
available here. The way HSBC deals with training and believing in
us is exemplary. Today, I am proud to be a part of HSBC and hope to
go a long way in contributing to the Bank's growth in
Bangladesh.
Human ResourcesHR relationship managers add value to our
organisation by leveraging various HR products like Resourcing,
Learning & Talent Development, Employee Relations, Engagement,
Performance Management, Recognition and Reward to drive business
performance.We believe that if we invest in attracting, retaining
and developing talented people, outstanding financial performance
will quickly follow. We play to the strengths of our employees. We
prefer to identify and develop an individuals strengths rather than
focus on trying to fix their weaknesses. Weaknesses will rarely, if
ever, be turned into strengths. But strengths can be turned into
even greater strengths.
Procurement and Vendor ManagementPVM enables and manages an
effective procurement process that allows Standard Chartered to
enjoy improved and sustainable value, within a managed risk
position.This business area owns the policies and procedures that
govern all supplier engagement activities. It also supplies a full
range of procurement tools and contract templates to ensure
quality, consistency and transparency in procurement.All
transactions must use PVM processes and eProcurement, where they
are available.
The Standard Chartered Private Bank to hire another 100
Relationship Managers to expand business11 May 2009 - The Standard
Chartered Private Bank will hire another 100 Relationship Managers
globally within the next 12 months, to further accelerate its
operations in its fast-growing markets.The Private Bank currently
has 350 Relationship Managers globally and the new hires are to
support planned expansion in its key markets in Asia, Europe and
the Middle East, in response to increasing demand from high net
worth individuals for Standard Chartereds private wealth management
services.Peter Flavel, Global Head of The Standard Chartered
Private Bank, said:Despite the challenging economic climate, the
Bank remains in good shape; we are highly liquid, well capitalised
and have a firm grip of risk management and cost control. This has
allowed us to remain open for business, invest in growing our
business and to support our clients. As were seeing a continuing
increase in client demand for our private banking services, we will
continue to invest in attracting talent to further strengthen our
proposition. Our long heritage and international expertise in Asia,
Africa and the Middle East is attractive to Relationship Managers
looking for a dynamic private bank with excellent growth prospects.
Our Private Bank is focused on leveraging existing client
relationships in the Groups businesses - Wholesale Banking, SME and
Priority Banking. Relationship Managers understand and like the
power of that strategy. That means theyll be able to speak with
potential clients who are already doing business with the Bank. We
are attracting talent, many of whom make direct contact with us
seeking opportunities in the Private Bank. The current market
dislocation is highlighting distinct opportunities for The Standard
Chartered Private Bank. We are seeing a `flight to quality in terms
of liquidity across our markets. It has given us an opportunity to
get closer to our clients and increase the depth of our
relationships.The Standard Chartered Private Bank is advantaged in
seeking out the opportunities that leverage its capabilities by
being integrated into the overall commercial Bank. Its business
model differs from most in that it is deliberately not a standalone
monoline business but rather integrated into the Groups businesses.
This means that Relationship Managers by working with other
colleagues in the Bank, have a strong base to work from and have
opportunities to build their business from within the Bank.Peter
added:We are after talent with an excellent track record of
performance and consistency. Our success will continue to be built
on a clear philosophy of wealth management that reflects the
expectations of our clients, as well as teamwork across the Bank as
we tap our existing customer base. We are here to meet clients
needs. To achieve this, we need a certain type of Relationship
Manager - someone with exceptional people and advisory skills, a
strong team player, commitment to building long-term partnerships
with clients and theyve probably been with their existing bank for
quite some time and understand the latent opportunities that exists
in Standard Chartered.-- Ends --For further information please
contact: Eva AngCorporate Affairs, Singapore 6 Battery Road,
Singapore 049909 Tel: +65 6530 3452 Email: [email protected]
Notes to Editors:The Standard Chartered Private Bank's heritage
stems from over 150 years of international banking excellence that
is the Standard Chartered Bank.The Standard Chartered Private Bank
works with clients and their families to understand not just their
financial goals but also their fundamental beliefs and values. By
offering true open architecture and best of breed products as well
as delivering first-class service for the daily banking needs of
its clients, The Standard Chartered Private Bank is ideally placed
to help clients achieve what they want from their wealth.We draw on
the strength of the Standard Chartered Bank network to deliver a
portfolio that is truly personal to the individual. Our clients
benefit from a broad array of specialised products and services
that can better meet complex needs as their wealth grows, ranging
from margin trading, complex credit solutions, structured products,
commodities and estate planning, to a wide range of investment
products including mutual funds and discretionary portfolios, to
the transactional deposits and savings accounts.The Standard
Chartered Private Bank has been named Global Best Private Bank by
Euromoney in 2008. Euromoney cited risk management, a focus on
growth markets, achievements in performance, growth in client base
and a commitment to service and advisory as success factors.
About Standard CharteredStandard Chartered PLC, listed on both
London and Hong Kong stock exchanges, ranks among the top 25
companies in the FTSE-100 by market capitalisation. The
London-headquartered Group has operated for over 150 years in some
of the worlds most dynamic markets, leading the way in Asia, Africa
and the Middle East. Its income and profits have more than doubled
over the last five years primarily as a result of organic growth
and supplemented by acquisitions.Standard Chartered aspires to be
the best international bank for its customers across its markets.
The Group derives more than 90 per cent of its operating income and
profits from Asia, Africa and the Middle East, generated from its
Wholesale and Consumer Banking businesses. The Group has over 1600
branches and outlets located in over 70 countries. The
extraordinary growth of its markets and businesses creates exciting
and challenging international career opportunities.Leading by
example to be the right partner for its stakeholders, the Group is
committed to building a sustainable business over the long term and
is trusted worldwide for upholding high standards of corporate
governance, social responsibility, environmental protection and
employee diversity. It employs more than 70,000 people, nearly half
of whom are women. The Groups employees are of 125 nationalities,
of which about 70 are represented in the senior management.For more
information, please visit: www.standardchartered.com
AwardsEvery year Standard Chartered receives awards for
innovation, excellence and business best in class.2008 has been
another bumper year for us. Here are the awards we've won.Banking
awards
Asian Banking and Finance Retail Banking Awards 2008Best
International Bank of the YearBest Retail Bank - SingaporeBest Core
Banking Initiative - SingaporeBest Branch Initiative - Vivocity
branch, SingaporeBest Self Service Initiative - Singapore
Private Banker International Awards 2008Outstanding Private Bank
in Asia Pacific
2008 Euromoney Awards For Excellence Global Best Private
Bank
Global Finance Stars of China Awards 2008Best SME Lending,
Foreign Bank in China
Asia Interactive Awards 2008For best microsite (SWAT - Secure
Web Action Team)
CNBC Financial Advisors Award 2008Best Financial Advisors Award
amongst Banks in India
British Business Awards 2008Best in Financial Services in
Singapore
The Asian Banker Excellence in Retail Financial Services Awards
2008Best Regional Retail Business in AsiaBank Retail Bank in
BangladeshBest Retail Bank in BruneiBest Retail Bank in
PakistanBest Foreign Retail Bank in China
Global Finance 2008World's Best Internet Bank for Africa &
Middle-East
Kenya Annual Banking Gala 2008Best Product Marketing Award in
Kenya for Diva Club AccountWholesale Banking awards
The Asset Triple A Asian Awards 2008Best Transaction Bank in
Korea - SC First BankBest Cash Management Bank in South AsiaBest
Trade Finance Bank in KoreaBest Sub-Custodian in KoreaBest Domestic
Custodian in KoreaStructured Finance Banker of the Year - Ong Tee
ChongBest Debt House in IndiaBest Debt House in PakistanBest Debt
House in SingaporeBest Project Finance Advisory HouseBest Asian
Currency Bond HouseBest Securitisation HouseBest Leveraged Finance
HouseBest Structured Trade Finance Bank
The Asian Banker AwardsAward for Achievement in Cash
Management
Euromoney Islamic Finance Awards 2008Best Project Finance
House
Euromoney Awards for Excellence 2008Best Cash Management Bank in
the Middle EastBest Debt House in United Arab EmiratesBest Debt
House in KuwaitBest Debt House in ThailandBest Global Private
BankBest Foreign Exchange Bank in Africa
FinanceAsia Country Awards 2008Best Foreign Commercial Bank in
Pakistan
Global Finance Awards 2008Best Trade Finance Provider in
SingaporeBest Trade Finance Provider in AsiaBest Bank for Risk
Management in AsiaBest Bank for Liquidity Management in AfricaBest
Supply Chain Finance Provider in AsiaBest Foreign Exchange Bank in
AfricaBest Foreign Exchange Bank in GambiaBest Bank in China for
SME Lending, Foreign BankBest FX Derivatives Provider - AsiaBest
Bank in BotswanaBest Bank in Zambia
Global Finance Best Sub-Custodian Bank Awards 2008Best
Sub-Custodian Bank in AsiaBest Sub-Custodian Bank in Middle
EastBest Sub-Custodian Bank in IndiaBest Sub-Custodian Bank in
IndonesiaBest Sub-custodian Bank in United Arab Emirates
Global Finance Best Internet Bank Awards 2008Middle East and
Africa Regional Winner - CorporateBest Corporate
Dear ShareholderThe Directors Remuneration Report (the DRR) has
been prepared by the Board Remuneration Committee (the Committee)
and approved by the Board as a whole. In line with previous years,
this report sets out: background information on the Committees
members, role and advisors; the Groups remuneration policy for
executive directors and other employees; an outline of the
remuneration arrangements for the Group Chairman, executive
directors and non-executive directors; detailed information on the
Groups share plans; tabular information on directors emoluments,
pension arrangements and share awards; and tabular information on
highest paid individuals.2007 was a busy year for the Committee. As
the Group continued to grow both organically and inorganically, the
Committee conducted, at the beginning of the year, a full review of
its effectiveness. As a result of this, we were able to prioritise
discussions to enable the Committee to focus on key substantive
issues. In addition to our regular agenda items, such as reviewing
directors compensation, managing the Group-wide variable
compensation spend and reviewing share plan design and performance
conditions, we held specific sessions on other remuneration-related
issues including, amongst other things: Wholesale Banks reward
programmes, to ensure that these are consistent with the business
strategy and market practice, but also aligned with the Groups
overarching reward principles; and an extensive strategic review of
the overall shape of the executive remuneration package, including
the balance between fixed, short and long term elements.On behalf
of the Committee, I encourage you to vote in favour of our report
at the Companys 2008 Annual General Meeting and, in the meantime,
welcome any questions and feedback that you may have.Ms R
MarklandChairman, Board Remuneration Committee26 February
2008Background Information on the Committee MembershipIn 2007, the
Committee comprised the following independent non-executive
directors: Background Information on the Committee Membership
Ms R Markland (Chairman)
Miss V F Gooding (appointed 23 February 2007)
Mr P D Skinner
Mr O H J Stocken
Lord Turner
Role of the CommitteeDuring 2007, the Committee met five times.
Details of attendance at meetings by Committee members are shown in
the Corporate Governance section.The Committee has specific terms
of reference which are placed on the Groups website at
www.standardchartered.com. It considers and recommends to the Board
the Groups remuneration policy and agrees the individual
remuneration packages of the Group Chairman, Group Chief Executive
and all other executive directors. The Committee also reviews and
approves the remuneration of certain other highly paid senior
management of the Group and advises on any major changes in
employee remuneration throughout the Group, including the
continuous review of incentive schemes to ensure that they remain
appropriate. Advisors to the Board Remuneration CommitteeIn 2004,
the Committee appointed Kepler Associates as its independent
advisors. In 2007, the Committee reappointed Kepler Associates to
advise it on a range of executive remuneration-related issues for a
further 12-month period. Kepler Associates does not provide any
other advice or services to the Group.In addition, during 2007, the
Committee received advice from the Director of People, Property and
Assurance (Dr T J Miller), the Group Head of Human Resources (Mrs T
J Clarke) and the Group Head of Reward (Dr N A Cuthbertson). Their
advice draws on formal remuneration survey data provided by Towers
Perrin and McLagan Partners.Towers Perrin also provided advice to
the Group on executive remuneration issues as well as retirement
consulting issues in North America and, together with Clifford
Chance LLP, on the design and operation of the Groups share plans.
Clifford Chance LLP also advises on issues relating to executive
directors contracts. McLagan Partners also provided advice to the
Group on market practice in variable compensation plans within the
wholesale banking sector.Remuneration Policy GroupThe success of
the Group depends upon the performance and commitment of talented
employees. The Groups reward programmes support and drive its
business strategy and reinforce its values. Its existing
remuneration policy for 2007 and, so far as practicable, for
subsequent years is to: support a strong performance-oriented
culture and ensure that individual rewards and incentives relate
directly to the performance of the individual, the operations and
functions in which they work or for which they are responsible, the
Group as a whole and shareholders interests; and maintain
competitive reward that reflects the international nature of the
Group and enables it to attract and retain talented executives of
the highest quality internationally. Many of the Groups employees
bring international experience and expertise to the Group and the
Group recognises that it recruits from an international
marketplace.The Committee reviews the remuneration policy on a
regular basis against significant regulatory developments, market
practice and shareholder expectations.Executive DirectorsTarget
remuneration levels for the executive directors are set with
reference to individual experience as well as the pay levels in the
FTSE 30 and the Groups international competitors. These two
groupings have business characteristics similar to the Group such
as international scope of operations, complexity and size (both in
financial terms and with regard to numbers of employees), and
represent organisations which compete alongside the Group for
talent.Although target remuneration levels are aligned to the
market, excellent performance by both the Group and by the
individual executive director is rewarded with higher bonus levels
and share awards, taking potential total remuneration to the upper
quartile or higher of the Groups key international competitors.As
the table below demonstrates, each executive directors target
remuneration is structured to give the heaviest weighting to
performance-related elements.
Executive Directors
Percentage of indicative totaltarget remunerationPercentage of
actual 2007 totalremuneration*
Base Salary34%23%
Bonus43%42%
Long-Term Incentives**23%35%
*Based on average of Group Executive Directors**Includes an
expected value of target share awards.Other EmployeesThe Committee
considers the remuneration policy in the context of all Group
employees.Base salaries of employees are determined in a similar
way to those of executive directors. The Groups approach is to
ensure that target total compensation is benchmarked to the
relevant market in which the individual is employed. Potential
total compensation is set at upper quartile or higher for excellent
individual and business performance. In addition: all employees are
eligible to receive a discretionary bonus dependent upon
performance and their contractual position; all employees are
eligible to participate in the Groups all- employee sharesave
schemes; core benefits are provided to all employees worldwide
based on local regulations and competitive practice. These will
normally include retirement benefits, medical insurance, life
assurance and annual leave; all employees are eligible to receive
an award under one or more of the Groups discretionary share plans
depending on performance and potential. The Group is actively
seeking to extend the level of equity participation enabling more
employees to share in the Groups success, rewarding and retaining
talent throughout the Group at all levels. In 2005 and 2006, over
1,000 and 1,300 employees respectively received a discretionary
share award for the first time. In 2007, a further 1,591 were added
to this total; and the Group is keen that an element of each
employees total compensation is performance-related. The proportion
of this variable compensation (which might be delivered through
bonus and share awards) increases with seniority. In addition, as
the chart below shows, the balance of shares as opposed to cash
also increases with seniority. The chart also shows the typical
level of target variable compensation for senior
executives/management (the Groups bands 1-4) expressed as a
percentage of base salary.
Although the above principles apply Group-wide, there is some
variation in how compensation is delivered. The Group employs
70,000 employees worldwide in over 50 countries and territories.
There are differing local market conditions which means
compensation is often structured in different ways (for example,
base salaries are not always the only element of core
compensation). Furthermore, due to the different costs of living in
the countries in which the Group operates and fluctuations in
foreign exchange rates, the Committee does not consider a ratio
comparison between executive directors and non-Board employees to
be a useful way of assessing the fairness of the Groups
practices.Remuneration Arrangements for Executive Directors Base
SalariesSalary levels are reviewed annually by the Committee taking
account of the latest available market data.Any increases in annual
base salary are normally effective from 1 April of the relevant
year. The annual base salary levels of executive directors as at 31
December 2006 and 31 December 2007 were as follows: > Top
Remuneration Arrangements
31 December2006*31 December2007Increase asa percentage ofbase
salary
P A Sands$1,102,970(550,000)$1,504,050(750,000)36.36%
G R Bullockn/a**$952,565(475,000)n/a
M B DeNoma $932,511(465,000)$982,646(490,000)5.38%
R H Meddings$932,511(465,000)$1,022,754(510,000)9.68%
*In 2007, increases to base salaries took effect from 1 January
following the reconfiguration of the executive directors portfolios
as a result of Board changes in November 2006.**Mr Bullock was
appointed to the Board with effect from 6 August 2007.Annual
Performance BonusEligibility CriteriaExecutive directors (and most
employees) are eligible to receive a discretionary annual bonus.
The objective of the annual bonus is to focus participants on the
achievement of annual objectives, which align the short-term
performance of the Group with the creation of shareholder
value.Plan MechanicsThe target and maximum award levels for
executive directors are 125 per cent and 200 per cent of base
salary respectively. Two-thirds of any bonus payment is payable
immediately in cash. The balance is deferred into Company shares,
which vest up to one year later. The deferred element is forfeited
if the executive leaves voluntarily during that period. Notional
dividends accrue on deferred, shares during the vesting period and
are delivered in the form of shares.As part of its strategic review
of executive compensation, the Committee reviewed the existing
maximum it had previously set under the plan and decided to
exercise its discretion to increase it, for outstanding
performance, with effect from 2008, from 200 per cent to 250 per
cent of base salary. Any bonus over the previous plan maximum would
be awarded entirely in deferred shares. No change has been made to
the target bonus level which remains at 125 per cent of salary. The
change in maximum bonus ensures that the Plan remains competitive
against the market, increases the proportion of the annual
incentive awarded for exceptional performance which is deferred and
provides the Committee with greater scope to differentiate in award
levels for those with exceptional performance.Bonus Pools The
Committee has oversight on the overall spend under the Groups
Annual Bonus Plan in which executive directors and employees
participate. The bonus pool size is linked to the Committees formal
assessment of Group performance by considering a number of
quantitative and qualitative measures, including earnings per
share; revenue growth; costs and cost control; bad debts; operating
profit; risk management; cost to income ratio, total shareholder
return, corporate social responsibility and customer service.
Determining Individual AwardsExecutive directors bonus awards are
made based on Group (as described above) and individual
performance. Personal performance is appraised taking account not
only of the results achieved by the individual but also their
support of the Groups values and contribution to the collective
leadership of the Group. The values principle is applied throughout
the organisation. Each executive director has written objectives
which are presented to the Committee at the start of the financial
year and then assessed at the year-end.The importance of individual
and Group performance as a determinant of the level of awards is
reflected in the variation of actual bonus award levels made to
executive directors in recent years. > Top Determining
Individual Awards
Min awardactually made(as percentageof base salary)Max
awardactually made(as percentageof base salary)Target award(as
percentageof base salary)Max awardpermitted underrules(as
percentage of base salary)
2007164%200%125%200%
2006161%191%125%200%
Long Term Incentives 2001 Performance Share Plan (the
PSP)Outline of the PSPThe PSP is designed to be an intrinsic part
of total remuneration for the Groups executive directors and a
growing number of the Groups senior executives. It is an
internationally competitive long-term incentive plan that focuses
executives on meeting and exceeding the Groups long-term
performance targets. The significance of the PSP as a percentage of
executive directors total potential remuneration is one of the
strongest indicators of the Groups commitment to paying for
demonstrable performance.Under the PSP, awards of deferred rights
or nil price options to acquire shares are granted and are
exercisable after the third, but before the tenth anniversary of
the date of grant, if the individual is still employed by the
Group. The target and maximum levels of award are 150 per cent and
400 per cent of base salary respectively in any one year. Awards
are entirely discretionary and are based on directors individual
performance.As shown in the table below, there has been variation
in the levels of share awards made to executive directors, again
illustrating the importance the Group places on individual
performance. A performance test is therefore effectively applied
both at the time of award and upon vesting. The table shows the
face value of the awards made in recent years.Long Term
Incentives
Min award actually made(as percentage of base salary)Max
awardactually made(as percentage of base salary)Target award (as
percentage of base salary)Max awardpermitted under rules (as
percentage of base salary)
2007250%275%*150%400%
2006275%350%150%400%
*As disclosed in last years report and accounts, a PSP award of
2.6 million was granted to Mr Davies in respect of his performance
as Group CEO for the financial year ending 31 December 2006. This
award equated to 306 per cent of his former base salary.At its
meeting in February 2008, the Committee recommended the following
proposed PSP awards for executive directors in respect of
performance for the 2007 financial year.Long Term Incentives
(Proposal)
Face value (000s)Percentage of current base salary
P A Sands2,5350%
G R Bullock1,544325%
M B DeNoma1,348275%
R H Meddings1,785350%
The Committee reviewed the performance conditions in 2007 and
concluded that, in aggregate, the combination of the EPS and TSR
performance measures and their targets remained appropriate,
providing a balance between driving stretching performance and
having an effective retention and motivation tool.Performance
ConditionsThe Committee will set appropriate performance conditions
each time that awards are made under the PSP. Half of the award is
dependent upon the Groups TSR performance compared to that of a
comparator group at the end of a three-year period. The other half
of the award will be subject to an EPS growth target applied over
the same three-year period.The rationale for the selection of these
performance conditions is set out in the following table: > Top
Performance Conditions
TSRMeasuring growth in share price plus dividends paid to
shareholders during that period, relative TSR is recognised as one
of the best indicators of whether a shareholder has achieved a good
return on investing in the Group relative to a basket of companies
or a single index.
EPSAn EPS performance condition provides an appropriate measure
of the Groups underlying financial performance.
TSR ElementThe constituents of the TSR Comparator Group are set
out in the table below:TSR Element
ABN AMROHSBC
Bank of AmericaJP Morgan Chase
Bank of East AsiaLloyds TSB
BarclaysOverseas ChineseBanking Corporation
Citigroup
DBS GroupRoyal Bank of Scotland
Deutsche BankUnited Overseas Bank
HBOSStandard Chartered
The percentage of award which will normally be exercisable at
the end of the relevant three-year performance period is as
follows:TSR Element Percentage
Position within Comparator GroupPercentage of award
exercisable
9th 15thNil
8th15
7th22
6th29
5th36
4th43
1st 3rd50
The Committee believes that it is preferable to measure TSR
performance using a local currency approach. This is considered the
most appropriate approach given the international composition of
the Comparator Group, particularly as a significant proportion of
comparator companies profits are in the same currency as their
primary listing. This local currency approach measures the real
impact for a shareholder focusing on relative stock movement rather
than taking into account exchange rate fluctuation.EPS ElementThe
percentage of award which will normally be exercisable at the end
of the relevant three-year performance period is as follows:>
Top EPS Element
Increase in EPSPercentage of award exercisable
Less than 15%Nil
15%15
Between 15% and 30%>15 but 40 but
