Our Remuneration Policy
Total Shareholder Return
This chart shows the value of £100 invested in HBOS on 31 December 2002 compared with the value of £100 invested in the FTSE 100 Index from the same date. To produce a "fair value" each point is a 30 day average of the return index.
Source: Datastream
Other Issues and Total Shareholder Return
The Group believes that share ownership by colleagues throughout the Group enhances their alignment with shareholders’ interests. Therefore colleagues in the Group are able to acquire shares through the sharesave plan; the share option plan (until 2004); the free share plan (from 2005); the sharebuy plan (from 2007); through our short term and long term incentive plans and through personal purchase.
The Group expects all Directors to own significant numbers of shares relative to salaries or fees. The shareholding is required to be at least 100% of salary or fee within three years of appointment. These requirements were satisfied by all relevant Directors in 2006 and we will formally review this again in 2009.
More information
This is a summary of the Group’s remuneration policy and practice. Full information appears in the Annual Report and Accounts 2007.