Annual Report 2011 - Hong Kong Monetary Authority

This scheme was implemented for a five-year period from
1 January 2011 and consists in allotting 8.33% of the subsidiary’s
shares.
The cost of these profit-sharing schemes is provisioned
annually in the affiliate’s financial statements.
Monaco
Our Monaco affiliate also has a profit-sharing scheme
aimed at motivating senior managers and rewarding loyalty.
There were six beneficiaries in 2011. The plan takes the
actual growth of the Bank’s value into account, and consists
in granting stock options with a five-year lifespan.
These may only be settled in cash when they are exercised.
The actual value of the affiliate’s shares is determined once
a year by independent appraisers appointed by the Bank.
Other Group entities
No profit-sharing schemes are currently in force at the other
Group entities.
Remuneration, stock options and loans in 2011
In accordance with articles 663 b bis and 663 c section 3
of the Swiss Code of Obligations, the remuneration and
loans granted to current members of the Bank’s governing
bodies are indicated in Note 15 to the Bank’s financial
statements (pp. 123 et seq).
In 2011 no remuneration was paid to past members. Nor
were there any additional fees or remuneration as defined
in the SIX Guidelines on Corporate Governance.
The variable portion of remuneration in the reporting year
accounted for 35.3% of the entire Group payroll and represented
65.3% of the total remuneration of the Executive
Committee.
CORPORATE GOVERNANCE 45