Gráficos del Punto de Equilibrio

Change in Pension Value

and Non-equity Nonqualified

Incentive Deferred

Stock Option Plan Compensation All Other

Name and Salary Bonus Awards Awards Compensation Earnings Compensation Total

principal position Year ($) $(1) _($)(2) _($)(3) _($)(4) _($)(5) _($)(6) _($)

Siddharth N. MehtaÏÏÏÏÏÏ 2006 $984,615 $ - $3,684,906 $1,575,292 $ - $ 351,288 $290,962 $6,887,063 Chairman &

Chief Executive Officer

Beverley A. SibbliesÏÏÏÏÏÏÏ 2006 $375,000 $ - $ 216,824 $ - $ 543,750 $ 17,269 $ 54,303 $1,207,146 Senior Vice President Ó

Chief Financial Officer

Thomas M. DetelichÏÏÏÏÏÏ 2006 $650,000 $2,000,000 $2,069,519 $ 787,646 $ - $1,158,293 $162,774 $6,828,232 Group Executive, Consumer

and Direct Lending

Walter G. MenezesÏÏÏÏÏÏÏ 2006 $642,308 $2,000,000 $1,476,173 $ 394,302 $ - $1,311,749 $151,568 $5,976,100 Group Executive, Card

Services

Kenneth H. RobinÏÏÏÏÏÏÏÏ 2006 $600,000 $1,000,000 $1,889,505 $ 787,646 $ - $1,070,148 $134,791 $5,482,090 Senior Executive Officer,

General Counsel and Corporate Secretary

(1)

The amounts disclosed for Messrs., Detelich, Menezes and Robin represent the discretionary incentive bonus relating to 2006 performance but paid in February 2007.

(2)

The values reflected in the table above are the amounts of compensation expense amortized in 2006 for accounting purposes under FAS 123R for outstanding restricted stock grants made in the years 2003, 2004, 2005 and 2006. A portion of the expense reflected for Messrs. Mehta, Detelich, Menezes and Robin relates to Performance Shares granted in 2005 and 2006 that will vest in whole or in part three years from the date of grant if all or some of the performance conditions are met as follows: 50% of the award is subject to a total shareholder return measure (""TSR'') against a comparator group. HSBC Finance Corporation's comparator group is comprised of U.S.-based organizations that compete with us for business, customers, and executive talent. The Performance Share comparator group includes: ABN AMRO Holding N.V., Banco Bilbao Vizcaya Argentaria, S.A., Banco Santander Central Hispano S.A., Bank of America Corporation, The Bank of New York Company, Inc., Barclays PLC, BNP Paribas S.A., Citigroup, Inc., Credit Agricole SA, Credit Suisse Group, Deutsche Bank AG, HBOS plc, JP Morgan Chase, Lloyds TSB Group plc, Mitsubishi Tokyo Financial Group Inc., Mizuho Financial Group Inc., Morgan Stanley, National Australia Bank Limited, Royal Bank of Canada, The Royal Bank of Scotland Group plc, Societπe Gπ enπ erale, Standard Chartered PLC, UBS AG, Unicredito Italiano, US Bancorp, Wachoviaπ

Corporation, Wells Fargo & Company and Westpac Banking Corporation. Depending on HSBC's ranking against the comparator group at the end of the performance period, the TSR portion of the grant may vest on a sliding scale from 100% to 0%. The remaining 50% of the award is subject to satisfaction of an earnings per share measure (""EPS'') and may vest based on an incremental EPS percentage in accordance with a defined formula. If the aggregate incremental EPS is less than 24%, the EPS portion will be forfeited and if it is 52% or more, the EPS component will vest in full. We have reduced the amount of expense related to the Performance Shares that would have been recorded by 50% due to the probability of a 0% vest on the TSR portion and a 100% vest on the EPS portion for both years 2005 and 2006. HSBC Finance Corporation records expense over the three year period based on the fair value which is 100% of the face value on the date of the award. The remaining grants are non-performance-based awards and are subject to various time vesting conditions as disclosed in the footnotes to the Outstanding Equity Awards at Fiscal Year End Table and will be released as long as the named executive officer is still in the employ of HSBC Finance Corporation at the time of vesting. HSBC Finance Corporation records expense based on the fair value over the vesting period which is 100% of the face value on the date of the award. Dividend equivalents, in the form of cash or additional shares, are paid on all underlying shares of restricted stock at the same rate as paid to ordinary share shareholders.

2004. The amounts reflected above are the amounts of compensation expense amortized in 2006 for accounting purposes under FAS 123R for outstanding stock option grants made in 2002 and 2003. The methodology of the valuation of these options was based on a Black-Scholes model for each of the respective years. The stock option grant made to certain named executive officers in 2004 is performance-based with 100% of the condition tested on Total Shareholder Return in 2007. The amount of compensation expense amortized in 2006 for accounting purposes under FAS 123R has been excluded from the amounts shown above due to the probability of the performance condition not being satisfied. The performance condition will be subject to a re-test in 2008, and again in 2009, and must be satisfied in order for the shares to vest.

(4)_{The amount disclosed for Ms. Sibblies represents the incentive bonus earned in 2006 but paid in February 2007 under the}

Management Incentive Program.

(5)

The HSBC-North America (U.S.) Retirement Income Plan (""RIP'') and the Household Supplemental Retirement Income Plan (""SRIP'') are described under Savings and Pension Plans on page 206.

Increase in values by plan for each participant are: Mr. Mehta Ó $26,541 (RIP), $324,747 (SRIP); Ms. Sibblies Ó $4,725 (RIP), $12,544 (SRIP); Mr. Detelich Ó $43,845 (RIP), $1,114,448 (SRIP); Mr. Menezes Ó $72,502 (RIP), $1,239,247 (SRIP); Mr. Robin Ó $75,017 (RIP) $995,131 (SRIP).

(6)

Components of All Other Compensation are disclosed in the aggregate. All Other Compensation includes such items as financial planning services, physical exams, club initiation fees, expatriate benefits, and car allowances. The following itemizes benefits that individually or in the aggregate for each executive officer exceeds $10,000: Car allowances for Messrs. Mehta and Robin were $11,000 each in 2006. Messrs. Detelich and Menezes and Ms. Sibblies are not eligible for a car allowance. Personal use of aircraft for Mr. Mehta was $2,598, for Mr. Detelich was $1,922 and for Mr. Menezes was $4,844. Club Dues and Membership Fees for Mr. Mehta in 2006 was $11,000. Personal use of Corporate Apartment was $720 for Mr. Detelich and $1,800 for Mr. Menezes in 2006. Personal use of Corporate Limo for Mr. Mehta was $8,000. Financial Counseling for Messrs. Mehta, Detelich and Menezes was $10,000, $3,500 and $8,000, respectively. Executive Tax Services for Mr. Robin in 2006 was $4,000. Executive Physical expenses for Mr. Mehta was $1,527, for Mr. Menezes was $691 and for Ms. Sibblies was $1,428. Messrs. Mehta, Detelich, Menezes and Robin each received Executive Umbrella Liability Coverage in the amount of $10 million at a cost of $1,850 for 2006.

The total in the All Other Compensation column also includes life insurance premiums paid by HSBC Finance Corporation in 2006 for the benefit of executives as follows: Mr. Mehta, $5,910; Mr. Detelich, $7,782; Mr. Menezes, $17,844; Mr. Robin, $12,941 and Ms. Sibblies, $3,375. All Other Compensation also includes HSBC Finance Corporation's contribution for the named executive officer's participation in the HSBC-North America (U.S.) Tax Reduction Investment Plan (""TRIP'') and the Supplemental Household International Tax Reduction Investment Plan (""STRIP'') in 2006 as follows: Mr. Mehta, $239,077; Mr. Detelich, $147,000; Mr. Menezes, $116,538; Mr. Robin, $105,000 and Ms. Sibblies, $49,500.

All Other

All Other Stock Option Awards: Grant Date Awards: Number of Fair Value Estimated Future Payouts Under Non-Equity Estimated Future Payouts Under Equity

Number of Securities of Stock Incentive Plan Awards(1)

Incentive Plan Awards(2)

Shares of Stock Underlying and Option Threshold Target Maximum Threshold Target Maximum or Units Options Awards

Name Grant Date ($) ($) ($) (#)(4)

(#) (#) (#) (#) ($)(3)

Siddharth N. MehtaÏÏÏÏÏÏÏÏ 3/6/06 0 N/A $7,240,000 66,657 N/A 222,189 N/A N/A $4,000,010 Chairman & Chief Executive

Officer

Beverley A. SibbliesÏÏÏÏÏÏÏÏÏ 3/31/06 0 $ 281,250 $ 562,500 N/A N/A N/A 29,513(5)

N/A $ 500,000(5)

Senior Vice President - Chief Financial Officer

Thomas M. DetelichÏÏÏÏÏÏÏÏ 3/31/06 0 N/A $4,344,000 30,254 N/A 100,848 N/A N/A $1,775,687 Group Executive, Consumer

and Direct Lending

Walter G. MenezesÏÏÏÏÏÏÏÏÏ 3/31/06 0 N/A $4,344,000 30,254 N/A 100,848 N/A N/A $1,775,687 Group Executive, Card

Services and Retail Services

Kenneth H. RobinÏÏÏÏÏÏÏÏÏÏ 3/31/06 0 N/A $2,172,000 21,356 N/A 71,187 N/A N/A $1,250,522 Senior Executive Officer,

General Counsel and Corporate Secretary

(1)_{Messrs. Mehta, Detelich, Menezes and Robin participate in the Executive Bonus Pool. As discussed in the 2006 CD&A, this plan is}

an annual cash incentive plan that is comprised mainly of corporate and business quantitative goals and qualitative goals. For 2006, the quantitative goals were not met and therefore no awards were made under this plan. Ms. Sibblies participates in the Management Incentive Program. As discussed in the 2006 CD&A, the Management Incentive Program is an annual cash incentive plan that is comprised of both quantitative and qualitative individual, business unit or company objectives which are determined at the beginning of the year with each objective being assigned a target and maximum payout based upon a percentage of base salary. The percentage of target and maximum payout is determined by the market data for the position the executive officer holds and will not change unless the executive officer changes into a position which has a different target and maximum payout. Typically the maximum payout is a 1x, 2x or 3x multiplier of target. Ms. Sibblies' actual award for 2006 was $543,750.

(2)_{Reflects the award of Performance Shares granted to Messrs. Mehta, Detelich, Menezes and Robin. As discussed in the 2006 CD&A}

and in Footnote 2 to the Summary Compensation Table, Performance Shares are subject to two performance conditions, each of which trigger potential payout of 50% of the aggregate award: the first objective is based upon Total Shareholder Return (""TSR'') and the second objective is based upon earnings per share (""EPS''), both measured over a three year performance period. TSR means the growth in share value and declared dividend income on the shares, measured in Sterling, during the three year performance period and is based on HSBC's ranking against a comparator group of 28 major banks as listed on page 192. The calculation of the share price component within HSBC's TSR will be the average market price over the 20 dealing days commencing on the day when HSBC's annual results are announced with the end point being the average market price over the 20 dealing days commencing on the day on which the annual results of HSBC are announced three years later. The TSR portion of the award will vest on a sliding scale based on HSBC's relative ranking against the comparator group at the end of the three year period. If HSBC is ranked 1st through 7th the vesting percentage will be 100%. If HSBC is ranked 8th through 14th, the vesting percentage will fall by 10% per rank. If HSBC is ranked 15th through 28th, the vesting percentage will be zero. The percentage of the TSR which will vest is defined in the following formula:

쐯(X-Z) x (A-B)쐰 ° B (Y-Z)

where:

X • the TSR performance of HSBC

Z • the TSR performance of the bank immediately below X Y • the TSR performance of the bank immediately above X

A • the vesting percentage linked to the ranking of Y as detailed above B • the vesting percentage linked to the ranking of Z as detailed above

The second performance condition is based upon EPS, which for purposes of awarding Performance Shares is the profit, excluding goodwill amortization attributable to shareholder's return, divided by the weighted average number of shares in issue and held outside HSBC during the performance year. The base measure will be the EPS for the financial year preceding that in which the award is made. EPS will then be compared over the three consecutive financial years commencing with the year in which the award is made. Incremental EPS will be calculated by expressing, as a percentage of the EPS of the base year, the difference in each year of the measurement period between the EPS of that year and the EPS of the base year. These percentages will be aggregated to arrive at the