HSBC has reduced the amount of cash executive directors receive in lieu of pensions from 50% to 30% of base salary.
The change to executive directors’ remuneration policy came into effect from January 2016. The change follows concerns raised by investors.
The lower pensions payments for executive directors also reduces their fixed pay and maximum variable pay potential because of the regulatory variable pay cap limiting variable pay to 200% of fixed pay.
HSBC has also changed its approach to long-term incentives, which are now subject to a three-year forward-looking performance period, in line with other FTSE organisations.
The bank is to seek approval for a new remuneration policy at its annual general meeting on 22 April. The policy takes into account shareholder feedback as well as new remuneration rules, which require deferral of variable pay over seven years rather than three years. The policy will come into effect in March 2017.