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Employees' Remuneration Structure

Updated: 20 Mar 2017
The remuneration structure is designed to ensure that there is an appropriate balance of fixed and variable rewards, which include both short-term and long-term incentives, and is weighted towards performance-related elements that take into account individual, functional and corporate performance.

Fixed component
 
  • Base salary
     
    • Base salary constitutes the major element of the remuneration package to attract, retain and incentivise talent in a competitive market. It is determined based on the particular job responsibilities, duties and scope of each position. HKEX’s policy is to pay a competitive base salary that is in alignment with the market median, and for key positions, it is benchmarked against the upper quartile.
       
Variable components
 
  • Performance bonus
     
    • HKEX’s bonus scheme is designed to relate employees’ reward to HKEX’s performance which is measured against a number of pre-determined factors including both financial and non-financial factors such as HKEX’s financial performance, strategic initiatives, organisational development, market and regulatory development. It is awarded on a discretionary basis and is differentiated based on individual performance rating, grade level and job function.
       
    • Employees’ rewards are differentiated based on a 5-point performance rating scale. A performance development process is in place to help employees set performance objectives, focus on performance improvement, and identify training and development opportunities. Information about employees’ training is set out in the CSR Reports.
       
  • Share award
     
    • HKEX operates a Share Award Scheme for its employees including the Executive Director. The Share Award Scheme is a long-term incentive for key employees, including HKEX's Chief Executive, who are identified as essential to HKEX’s operations and future development. The award is tied to the achievement of objectives that strengthen HKEX for the long term rather than the current year profit. It also serves as a retention tool for key, high performing staff.
       
    • Rules, trust deed and announcements relating to the Share Award Scheme
       
    • Details of awarded shares granted are set out in the financial statements.
       
Fringe benefits
 
  • Provident fund
     
    • For permanent employees in Hong Kong, benefits are offered through Hong Kong Exchanges and Clearing Provident Fund Scheme (a registered scheme under the Occupational Retirement Schemes Ordinance (ORSO) with the Mandatory Provident Fund (MPF) exemption). The ORSO scheme is a defined contribution scheme providing employees with investment choices. HKEX contributes 12.5 per cent of the employee’s base salary if the employee contributes 5 per cent, or HKEX contributes 10 per cent when the employee chooses not to contribute.
       
    • For temporary employees or those permanent employees who elect not to join the ORSO scheme, a master trust MPF scheme providing retirement benefits is offered. Under the MPF scheme, HKEX provides contributions to each employee up to the statutory limit (ie, 5 per cent of the employee’s relevant income subject to a maximum of $1,500 per month).
       
    • The Group has also sponsored a defined contribution pension scheme for all employees of LME Holdings Limited and its subsidiaries aged over 25. For employees who were employed before 1 May 2014, the Group contributes 15 per cent to 17 per cent of the employee’s basic salary to the London Metal Exchange pension scheme.  For employees who started on or after 1 May 2014, they have the option to contribute a percentage of their salary toward the pension scheme, the company will then double match the contribution up to a maximum of 10 per cent as follows:
      Employee's Contribution
      Employer's Contribution
      3%
      6%
      4%
      8%
      5%
      10%
 
  • Other benefits
    • Other benefits include medical insurance, dental insurance, life and personal accident insurance, employee compensation and business travel insurance.
  • For employees who are employed in Mainland China, statutory benefits including the mandatory housing fund and the social insurance are provided in accordance with the laws of the People’s Republic of China.
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