Remuneration packages of Directors and employees are reviewed regularly according to the remuneration policy to ensure that they are competitive and in line with the market in attracting and retaining individuals with the relevant skills, knowledge and experience.
- The Remuneration Committee is responsible for reviewing the remuneration of Directors and employees annually, and making recommendations to the Board for its consideration. In addition, HKEX participates in a number of compensation surveys conducted by different human resources consultants every year to keep track of market trend and movement.
- The annual review of Non-executive Directors’ fee aims at ensuring they are remunerated fairly and appropriately, and takes into account factors including the responsibilities taken on by the Non-executive Directors, time commitment required to fulfill their role and the variable workload associated with their memberships at the Board committees. The review is also based on the average annual remuneration of non-executive directors of Hang Seng Index constituent companies, overseas listed exchanges, and other major financial services companies.
- Changes in remuneration of Non-executive Directors are subject to shareholders' approval at general meetings.
- No Director should be involved in deciding his/her own remuneration. Neither the Chief Executive nor the senior management participates in the Remuneration Committee’s discussion on his/her pay review and performance award. The Remuneration Committee consults the Chairman on the Chief Executive’s performance, and the Chief Executive on the individual performance of the senior management.
- Review of employees’ remuneration structure across all employees at different grades is undertaken regularly and is, from time to time, conducted by external consultant. The review is comprehensive covering all elements including base salary, performance bonus, and long-term incentives.
- The mix of fixed and variable components in the employees’ remuneration package is subject to annual review based on the Group’s performance.
- In conducting the employees’ pay review annually, the Remuneration Committee and the Board take into account a number of factors, such as individual responsibilities and performance, economic conditions, and competitiveness in the job market.
- According to HKEX’s clawback policy, variable components of the remuneration to the most senior level of executives of the HKEX Group will be subject to clawback provisions.