Strategic report Governance Financial statements Other information DIRECTORS’ REMUNERATION POLICY (SUMMARY) CONTINUED Component / purpose and link to strategy Operation and performance measures Maximum opportunity Sustained Performance Plan Annual awards over HL plc shares will vest over a five year period, subject to the achievement of underpinning The maximum award each year under the Policy is half Aligns the interests of Directors with those of performance conditions over a period of three financial years beginning from the financial year in which awards times base salary. shareholders and rewards long-term stewardship are granted. Vested shares will be subject to a further retention period as required under regulation. of the Company. The grant of awards will be subject to satisfactory personal performance of each Director in the period prior to grant. The underpinning performance conditions applicable for each award will be disclosed up front in the remuneration report. Subject to regulatory requirements, dividend alternatives will accrue on unvested awards up to the vesting date and will be paid as soon as practical after exercise of the award. Awards are subject to a formal malus mechanism until vesting. Awards are subject to clawback until the end of any post vesting retention period. Further details of malus and clawback provisions are set out on page 81 of the 2020 Report and Financial Statements. Shareholding Guideline All Executive Directors are expected to hold a number of shares in the Company, with a specific market value Not applicable. Aligns the interests of management and shareholders expressed as a percentage of their salary, within a reasonable timeframe (typically within six years of to the success of the Group. appointment). The current shareholding guideline for Directors is a minimum value of three times base salary. Vested and unvested (net of tax) awards under the annual performance bonus are included in the calculation of a Director’s shareholding for this purpose. Unvested awards, no longer subject to performance conditions (net of tax) under the Sustained Performance Plan are also included. Reflecting best practice, there is a post-cessation shareholding guideline in place, which applies for two years following cessation of employment. Upon ceasing to be employed, Directors will be required to retain a shareholding equal to their shareholding guideline, or the number of shares actually held on departure, whichever is the lower, for twenty four months. This will not include shares purchased or awarded to Directors upon recruitment in respect of any buyout award. Nor will it include shares vested prior to the 2020 AGM. 94 Hargreaves Lansdown Report and Financial Statements 2021