Strategic report Governance Financial statements Other information ANNUAL REPORT ON REMUNERATION CONTINUED Overview of activities during the financial year Consideration of employment conditions The Committee is regularly updated on the pay and employment elsewhere in Company conditions for the wider workforce through reports from the 11% 11% The Committee considered the Company’s remuneration Reward Governance Committee and this provided context for its Regulatory Business performance and principles which apply across the Group when determining the decisions regarding the remuneration policy. and governance risk assessment review Executive Director Policy outlined above. In particular, the approach taken to salary increases and that the structure of the The Committee also considers the wider salary increase, annual bonus aligns closely to the approach generally taken across remuneration arrangements and employment conditions across the wider workforce, and the same SPP structure is used for all the wider employee population when considering Directors’ pay 13% participants within the plan. and awards. Other including management admin Over the year, we have adopted an ‘Always Listening’ strategy to enable us to better consider the voice of our colleagues when making decisions. 17% 48% Wider workforce policy Executive and gender pay Remuneration and policy Executive Director Remuneration for 2021 Remuneration payable for the 2021 financial year (1 July 2020 to 30 June 2021) (Audited) Consultation with employees The remuneration policy operated as intended in the financial year with remuneration received by Executive Directors in relation The HL Colleague Forum was set up to create a feedback channel to performance in 2021 set out below: directly between colleagues and the Board on matters of strategic Single Total Figure Table importance. During the year, the Forum considered culture at HL, focusing on inclusion and diversity, pay and development, and Other Annual Bonus Employer Total Total our strategy. Gross Basic taxable Upfront Deferred LTIP / Pension Fixed Variable Name of Salary benefits1 cash shares SPP2 contribution3 Total Remuneration Remuneration In 2021, the Colleague Forum discussed the factors considered Director Year £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 when a) setting executive pay, b) the differences between Chris Hill 2021 648 1 1,175 783 – 71 2,678 720 1,958 executive pay and our approach for the wider workforce and 2020 630 6 1,243 829 – 32 2,740 668 2,072 c) how business performance is measured, including the alignment Philip Johnson 2021 459 1 785 523 – 50 1,818 510 1,308 to objectives and ESG. The Forum recognised the complexities 2020 446 5 870 580 – 22 1,923 473 1,450 involved and drew out the importance of clear and transparent alignment with business performance, colleague satisfaction Notes and delivery against our strategy. The majority of colleagues 1 This includes Medical, PMI and no SAYE discount value over the term of the savings contract as this was reported last year. 2 Sustained Performance Plan (SPP) is our Long Term Incentive Plan (LTIP), which was approved at the 2017 AGM and granted in November 2017. Subject to underpinning commented that there was alignment and there was also clear performance conditions these awards wil start to vest in 2022 . No SPP award has vested and therefore none of the SPP is attributable to share price growth. support for executive share ownership, noting that it was 3 This includes employer pension contributions and any pension allowance paid in lieu of pension contributions. important they had ‘skin in the game’ . 99 Hargreaves Lansdown Report and Financial Statements 2021