Strategic report Governance Financial statements Other information ANNUAL REPORT ON REMUNERATION CONTINUED All-employee share plans Sourcing shares The Company operates a SAYE share option scheme on the same terms for all employees. The Investment Association guidelines on sourcing shares have been followed and, in line with All employees are encouraged to become shareholders, both through direct ownership or through the scheme rules, the Company has not issued shares under all employee schemes which, when participation in the share scheme. At the end of the latest financial year, 30% of the Group’s aggregated with awards under all of the Company’s other schemes, exceed 10% of the issued ordinary employees owned shares in the Company. Both Executive Directors opted to participate in the share capital in any rolling 10 year period. The Company has also not issued new shares under 2020 cycle of the SAYE scheme. executive (discretionary) schemes which exceed 5% of the issued ordinary share capital of the Company in any rolling 10 year period. Executive Directors’ shareholding and share interests (audited) The current guideline for Executive Directors to accumulate minimum personal holdings in Hargreaves Lansdown plc shares amounts to a value of three times base salary within six years of appointment to the Board. Current shareholdings are summarised in the following table: Outstanding share Outstanding Outstanding options subject to share options share options performance subject to subject to conditions and continued continued continued No. of share Shareholding as a Beneficially Beneficially employment employment employment arising options vested Shareholding multiple of base owned owned arising from arising from from sustained No. of share options but unexercised guideline (multiple salary achieved Shareholding Name of Director at 30 June 2020 at 30 June 20212 SAYE scheme deferred bonus performance plan exercised in year at 30 June 2021 of base salary) at 30 June 2021 guideline met Chris Hill 29,260 51,639 1,547 81,051 67,962 42,2261 0 Three times 1.27 No3 Philip Johnson 32,314 40,348 1,547 53,240 48,131 11,5161 0 Three times 1.40 No3 Notes 1 Options exercised granted under 2017 Deferred Bonus Plan. The market value at the date of exercise was £16.93 per share and the option exercise price in aggregate was £1.00. 2 Includes shares held by the Executive Directors and their connected persons. 3 Unaudited – Although the Executive Directors have not currently met their shareholding guideline, they are on track to do so within the relevant time period of six years. All Executive Directors are subject to post-cessation shareholding in line with the policy which may include holding shares in a nominee arrangement. There has been no subsequent change in Executive Directors’ shareholding and share interests as of 4 August 2021. Pension Additionally the Group has introduced a pension redirection mechanism from July 2020 where No Directors or employees participate in a defined benefit pension scheme. colleagues who have maximised their pension tax relief can contribute, on a post tax basis, to a Fund The Group operates its own Group Self Invested Personal Pension (the GSIPP) which applies to & Share Account and continue to receive matching in the same way as the current pension matching, Executive Directors and employees. The Company requires a minimum employee contribution of 5%up to a maximum 11% employer contribution, net of appropriate taxes. Where a colleague, who has of reference salary and in exchange the Company will contribute 5%. Employees who contribute up to maximised their pension tax relief does not wish to contribute to a savings vehicle, the Group will make 3% more than the 5% receive double matching. This means that for an 8% employee contribution thean additional monthly payment equivalent to the employer’s pension contribution amount forsaken up Company contribution is 11%. to a maximum of 5% of reference salary. The Committee confirms that no excess retirement benefits have been paid to current or past Executive Directors. Colleagues wishing to make additional contributions to the GSIPP can do so via salary exchange or bonus waiver ensuring that they benefit from the maximum, immediate relief from income tax and National Insurance. 105 Hargreaves Lansdown Report and Financial Statements 2021