A formal and transparent policy is in place to determine the remuneration packages of individual Directors and employees.
- The Remuneration Committee is mandated to formulate the Group’s remuneration policy for the Board’s approval, and to make recommendations to the Board on the Group’s annual salary adjustment, the annual performance bonus and share award.
- The objective of remunerating Non-executive Directors is to ensure that there is an appropriate level of remuneration to attract and retain experienced people of high calibre to oversee HKEX’s business and development. Their remuneration is reviewed annually with reference to companies of comparable business or scale, and any changes are subject to shareholders’ approval.
- Non-executive Directors are not entitled to participate in the share award scheme operated by HKEX, or to receive other fringe benefits provided by HKEX. Non-executive Directors do not have service contracts.
- Quality and committed staff are valuable assets contributing to the Group’s success. To ensure the ability to attract and retain talent, HKEX’s remuneration policy is built upon the principles of providing equitable and market-competitive remuneration that supports and sustains a performance culture and enables the achievement of strategic business goals. HKEX’s remuneration policy is, therefore, aimed at being competitive but not excessive.
- Employee’s remuneration package (including that of HKEX’s Chief Executive) comprises fixed and variable components benchmarked against a mix of local and regional financial institutions, professional firms and major corporations.
- To enhance the governance of HKEX’s senior executive compensation, a clawback policy was introduced on 11 November 2020. Under the policy, incentive payments to the most senior level of executives of the HKEX Group, whether in form of cash or share-based awards, are subject to clawback under special circumstances according to the policy, which include but not limited to where there has been a material misstatement or omission in the financial reports of the HKEX Group, or if the relevant senior executive has engaged in serious negligence, fraud or misconduct.