Strategic report Governance Financial statements Other information DIRECTORS’ REMUNERATION POLICY (SUMMARY) The Directors’ remuneration policy was subject to a binding vote available to view on our website at www.hl.co.uk/investor-relations. external market, and provides fair rewards that will attract, retain and approved by shareholders at our 2020 AGM held on 8 October The tables below summarise the key elements of pay for Executive and motivate individuals of the calibre required to run a group of 2020. It is intended that it should apply for three years, until our and Non-Executive Directors. the scale and complexity of Hargreaves Lansdown. 2023 AGM. The Company’s Directors’ Remuneration Policy (“the Policy”) is The policy is divided into separate sections for Executive and The full Directors’ remuneration policy can be found on pages 78 designed to ensure that remuneration supports the Company’s Non-Executive Directors. to 85 of the 2020 Report and Financial Statements, which is strategic objectives, is appropriately positioned against the Executive Directors Component / purpose and link to strategy Operation and performance measures Maximum opportunity Base salary Base salaries are reviewed annually, with any increase usually effective from 1 July. No absolute maximum increase. Reflects the individual’s responsibilities, experience and contribution. Base salaries are set taking into account a range of factors including external remuneration levels and remuneration levels within the Group, as well as an individual’s responsibilities, experience and contribution. Supports the recruitment and retention of the calibre of individuals required to lead the Company. Base salary will ordinarily increase by no more than the average of relevant employee increases. Any increase beyond this would only be made in exceptional circumstances, which would be explained by the Remuneration Committee. Circumstances in which the Committee may award increases outside this range may include: • A change in the scope and/or size of the Executive Director’s role and/or responsibilities; • Performance and/or development in role of the Executive Director; and • A material change in the Group’s size, composition and/or complexity. Benefits The Committee’s policy is to provide Executive Directors with competitive levels of benefits, taking into While no absolute maximum level of benefits has been An ‘across the board’ benefits package is available both consideration the benefits provided to all eligible employees and the external market. set, the level of benefits provided is determined taking to employees and Directors alike. into account individual circumstances, overall costs to Where costs are necessarily incurred in the performance of duties on behalf of the Company, those costs will the business and market practice. Supports the recruitment and retention of the calibre be reimbursed in full, e.g. travel, accommodation, subsistence, relocation, and any tax and social costs arising. of individuals required to lead the Company. In approving the benefits paid, the Committee will Provision of tax efficient benefits such as additional holiday, childcare vouchers and workplace parking is ensure that they do not exceed a level which is, in the available through a salary sacrifice mechanism. Committee’s opinion, appropriate given the Executive Other benefits include (but are not limited to) Group life insurance and Group income protection, as well as Director’s particular circumstances. participation in the Save As You Earn scheme. Pension Pension provision is provided in line with the pension provision available for all employees. The Group provides a matched employer contribution Provides adequate pension saving arrangements for of 5% of base salary. Directors and employees. Any changes made to the employee arrangements will be carried across to the Directors. Where employees make additional contributions of Supports the recruitment and retention of the calibre The Committee may amend the form of any Director’s pension arrangements in response to changing pension over 5% of salary, these will be double matched by the of individuals required to lead the Company. legislation or similar developments, so long as any amendment does not increase the cost to the Company of a Company, up to a maximum of 11% of salary. Director’s pension provision by any greater percentage than the increase to the provision for all other employees. The maximum contribution available to the Directors The Company will contribute, on the same basis as the pension provision available to all employees to a savings is 11% of salary, in line with the wider workforce rate. vehicle where a Director has reached the Lifetime Allowance, would exceed any pension contribution limits in The maximum cash alternative is 5%. any year, or has elected to protect their Lifetime Allowance. Alternatively if, in these circumstances, the Director does not wish to contribute to a savings vehicle, a cash allowance will be paid. Any contribution paid as a result of waiver of the cash element of an Annual Performance Bonus will not be All employees and Directors may waive an element of their Annual Performance Bonus in return for a counted towards these maxima and will not attract corresponding employer’s contribution into their pension. matched funding. 92 Hargreaves Lansdown Report and Financial Statements 2021