Strategic report Governance Financial statements Other information ANNUAL REPORT ON REMUNERATION CONTINUED Implementation of the Remuneration Policy in 2021/22 – Executive Directors Annual bonus Salary For the annual bonus, awards will continue to be subject to performance assessment against a The Executive Directors’ base salaries were reviewed in June 2021. In reviewing base salaries the combination of financial/growth (50%) and client and delivery (30%) measures. In order to better Committee takes into account salaries paid elsewhere across the Group, relevant market data and articulate and measure progress across ESG measures, we have adapted the personal objective (20%) information on remuneration practices in peer companies in the financial services sector. to more clearly reflect the strong focus across governance and social activity, as well as an increased Having recognised the Executive Directors’ continued and excellent delivery over a sustained period focus on environmental matters. of time against personal and business objectives, the Committee, having considered shareholder In addition, the award will continue to be assessed against the Hargreaves Lansdown values. Risk and feedback, has approved salary increases in line with our wider workforce approach. The increases compliance considerations will also be taken into account at both Company and individual levels. ensure we are able to appropriately attract, retain, motivate and recognise talent, leadership and The Company and individual performance assessment will include the following measures: continued strong performance in an increasingly competitive market landscape where the business has significantly increased in scale and complexity over the course of their tenure. Performance categoryWeightingObjective Descriptor Measure Based on this information, the Committee has decided to award the CEO a two-stage salary increase Define and shape the business to thrive at Net New Business of 8% for 2021/22 and 4.3% for 2022/23. For the CFO, it was agreed that he will receive a salary increase Financial/growth 50% scale, deliver sustainable long term financial Client Numbers of 6.8% for 2021/22. results, and evolve our market leading client Profit Before tax service to exceed market expectations Client retention Although Philip Johnson has since announced his desire to step down from his position, I would like to Client and Delivery30% Client Advocacy clarify that the salary increases relate to the Executive Director roles and, as such, we continue to Strategic Delivery believe it is right to ensure they are positioned appropriately. Reduce our impact on the environment, Assess and develop the evolve our sustainable and responsible footprint of HL, agree with the Whilst these increases are greater than the average salary increase percentage, the approach is in line Environment investment proposition and provide the tools Board steps to help clients be with how the wider workforce salaries are reviewed, where a broader salary increase table is used that and information to enable clients to invest in responsible investors and takes into account individual performance and market positioning. line with their preferences understand the footprint of their investment portfolio Name of Director Salary as at 1 July 2021 (£) Salary as at 1July 2020 (£) % increase Evolve and communicate the strategy, and Reputation 20% proactively manage the reputation of the Chris Hill 700,000 648,000 8.0% Group across all stakeholders Philip Johnson 490,000 459,000 6.8% Social Develop a diverse, inclusive and innovative Diversity and Colleague culture with colleagues who are engaged, engagement empowered, work together and live our values Governance Shape a well governed organisation that Effective controls operates within the Board’s risk appetite. and processes 111 Hargreaves Lansdown Report and Financial Statements 2021 lanosreP