Strategic report Governance Financial statements Other information ANNUAL STATEMENT BY THE CHAIR OF THE REMUNERATION COMMITTEE DIRECTORS' REMUNERATION REPORT Finally, I want to provide you with details of our areas of focus Aligning our pay philosophy for the forthcoming year. with our purpose and values. Encouraging client-centric sustainable business performance Our purpose is to empower people to save and invest with confidence and our pay philosophy aligns to this and aims to: • Attract, retain and motivate a diverse range of high calibre colleagues who live our culture and values; Reward client-centric sustainable performance aligned to our Additionally, having taken views from our shareholders, you will • see in this report our intention to align the Executive Directors’ purpose and values; remuneration more appropriately to our performance • Recognise our colleagues who deliver exceptional client service expectations, the growth of the business and where they are the HL Way; positioned in respect of the overall market. • Share inthe success of the Company and align colleagues’ A summary of the remuneration policy approved by shareholders interests with those of shareholders; at the 2020 AGM is presented on pages 92 to 93. • Encourage colleagues to save over the long term, in line with Business context in 2021 Dear Shareholder our Company purpose; and This has been a difficult year for so many and I’m proud that, I’m delighted to have joined the Board of Hargreaves Lansdown through the contribution of all our colleagues, we have delivered a • Offer flexibility to meet the needs of a diverse workforce. very strong performance whilst continuing to manage the unique as Remuneration Committee Chair and, on behalf of the Board, I am pleased to present my report. The Group’s remuneration policies and practices are designed challenge presented by the COVID-19 pandemic. Over the period to encourage sustainable and responsible long term success by we have responded to our clients’ needs through this uncertainty, Having spent some time with my Board colleagues and the senior supporting the business strategy, recognising strong, collaborative managed high business volumes and the changing external leadership team, I have been struck with how this purpose-led performance, and delivering value to our shareholders, without environment with confidence and delivered a record organisation continues to perform well and do the right thing for paying more than is necessary, whilst taking account of regulatory performance, with, notably, more new clients, trades, and its stakeholders. requirements, our impact on our community, affordability and clients interacting with our website and app than ever before. I have set out below an overview of our remuneration policy market conditions. This has been a year of delivery focused on improving and philosophy which is aligned to our values and is designed Having applied our new remuneration policy this year, I am client service and introducing new tools and products to to encourage client-centric sustainable business performance. comfortable that the remuneration policy that was supported by our offering; including the launch of our Wealth Shortlist, During this financial year, the Committee’s main focus was on our shareholders last year remains fit for purpose to recognise the a new personalised online pension drawdown application, ensuring appropriate remuneration outcomes based on 2021 contribution of our executives to the success of HL. Although I and drawdown investment pathways that offer our clients business performance, improving gender pay and diversity, and recognise the progress made in improved transparency around clear solutions based on their needs. At the same time implementing the agreed changes to our remuneration policy from performance measures last year, we need to increase our focus we have continued to diversify by introducing further cash last year in anticipation of upcoming regulatory changes impacting on (and measurement of) Environmental, Social and Governance savings options with the launch of our Active Savings Cash ISA. our industry. We were able to gather shareholder feedback, as well (ESG) progress, and I thank our shareholders for the opportunity as seeking and responding to the views of our wider workforce to discuss our approach on this matter. regarding remuneration, culture and Company strategy. 88 Hargreaves Lansdown Report and Financial Statements 2021