Strategic report Governance Financial statements Other information ANNUAL REPORT ON REMUNERATION CONTINUED Details of performance in each of these areas is set out below: Financial / Growth (50% weighting) Threshold Target Stretch Actual Achievement Commentary Net new business £4.0bn £5.0bn £7.7bn £8.7bn 100% An exceptional performance with net new business above a very ambitious stretch target and prior year (£7.7bn) driven by organic client growth and increased investor confidence. The Committee recognised this very strong performance despite an uncertain external environment and significant volatility throughout the year. Client numbers 1,419,000 1,509,500 1,600,000 1,644,703 100% Exceptional performance with 233,000 net new clients (188,000 last year). The Committee noted the further impact of a very effective marketing approach with increased account opening as well as new clients. The Committee also noted continued growth in market share (41.1% to 42.9% in the platform market and 39.5% to 43.3% in the UK execution only stockbroking market). Profit before tax £240.0m £272.7m £339.5m £366.0m 100% The Committee noted exceptional performance through very strong revenue numbers, strong cost control, excellent focus on trading volumes and strategic decisions regarding investment. Overall achievement 50% of 50% weighting Client, colleague and delivery (30% weighting) Threshold Target Stretch Actual Achievement Commentary Client retention 90% 92.8% 94% 92.1% 44.6% A good overall performance recognising client retention is slightly below last year (92.8%). The Committee noted the measures put in place by management to maintain client service during a year of extremely high volumes and disruption to colleague working patterns. Colleague 59 63 67 66 87.5% Very strong performance supported by many other positive results from the colleague survey, including leadership, engagement management and culture measures. The Committee noted the extensive support provided over the year in response to the significant personal challenges and disruption experienced by our colleagues. The Committee also noted the progress made in developing HL’s culture through a Strategy on a Page engagement programme, launch of the HL Way and continued empathetic leadership throughout the year. Strategic delivery 0 50% 100% 75% 75% The Committee noted very strong marketing performance and the positive impact of combining client service and support activities into one Service function. The Committee noted the good progress made in delivering the technology and data strategy, the addition of new features to the proposition and improvements across best practice, governance, controls, capability and risk management. In addition the Committee noted the resilience of core systems and high systems availability together with management’s quick response to restore service availability during surges of client activity and acknowledged the impact high volumes had on management’s ability to deliver the full strategic plan. Overall achievement 20.7% of 30% weighting 101 Hargreaves Lansdown Report and Financial Statements 2021