HSBC 2001 Annual Report Download - page 136

HSBC HOLDINGS PLC
Report of the Directors (continued)
134
HSBC Holdings Savings-Related Share Option Plan: Overseas Section
HSBC Holdings ordinary shares of US$0.50 each
Date of award
Exercise
price (£)
Exercisable
from
Exercisable
until
Options at
1 January
2001
Options
awarded
during year1
Options
exercised
during year2
Options
lapsed
during year
Options at
31 December
2001
10 Apr 1995 1.8060 1 Aug 2000 31 Jan 2001 368,277  367,416 861 
3 Apr 1996 3.0590 1 Aug 2001 31 Jan 2002 1,730,415  1,647,006 37,926 45,483
9 Apr 1997 4.5206 1 Aug 2002 31 Jan 2003 5,934,075  83,277 154,692 5,696,106
6 Apr 1998 5.2212 1 Aug 2003 31 Jan 2004 3,606,515  30,313 182,354 3,393,848
1 Apr 1999 5.3980 1 Aug 2004 31 Jan 2005 13,742,217  74,696 797,338 12,870,183
10 Apr 2000 6.0299 1 Aug 2005 31 Jan 2006 30,072,891  62,166 2,236,726 27,773,999
11 Apr 2001 6.7536 1 Aug 2004 31 Jan 2005  11,441,215 1,345 777,869 10,662,001
11 Apr 2001 6.7536 1 Aug 2006 31 Jan 2007  3,460,924   3,460,924
1The closing price per share on 10 April 2001 was £8.42.
2The weighted average closing price of the securities immediately before the dates on which options were exercised was £8.585.
HSBC Holdings Savings-Related Share Option Scheme: USA Section
HSBC Holdings ordinary shares of US$0.50 each
Date of award
Exercise
price (£)
Exercisable
from
Exercisable
until
Options at
1 January
2001
Options
exercised
during year1
Options at
31 December
2001
16 Aug 1996 3.2530 1 Jul 2001 31 Dec 2001 2,380,633 1,499,434 881,199
12 Aug 1997 6.5187 1 Jul 2002 31 Dec 2002 1,329,944 9,356 1,320,588
24 Aug 1998 3.7768 1 Jul 2003 31 Dec 2003 2,414,761 2,880 2,411,881
10 Aug 1999 6.3078 1 Jul 2004 31 Dec 2004 1,502,733 3,012 1,499,721
No options were awarded or lapsed during the year.
1The weighted average closing price of the securities immediately before the dates on which options were exercised was £8.165.
Discretionary share incentive plans
The HSBC Holdings Group Share Option Plan, and
previously the HSBC Holdings Executive Share
Option Scheme, are discretionary share incentive
plans under which HSBC employees, based on
performance criteria and potential, are granted
options (at nil consideration) to acquire HSBC
Holdings ordinary shares of US$0.50 each. Since
1996 the vesting of these awards has been subject to
the attainment of pre-determined performance
criteria, except within CCF (which was acquired in
2000) where performance criteria will be phased in.
The maximum value of options which may be
granted to an employee in any one year (together
with any Performance Share Awards under the
HSBC Holdings Restricted Share Plan 2000) is 150
per cent of the employee's annual salary at the date
of grant plus any bonus paid for the previous year. In
exceptional circumstances this could be raised to 225
per cent. Subject to achievement of the performance
condition, options are exercisable between three and
ten years from the date of grant. Employees of a
subsidiary that is sold or transferred out of HSBC
may exercise options awarded under the HSBC
Holdings Group Share Option Plan within six
months regardless of whether the performance
condition is met.
The terms of the HSBC Holdings Group Share
Option Plan were amended in 2001 so that the
exercise price of options granted under the Plan in
2002 and beyond would be the higher of the average
market value of the ordinary shares on the five
business days prior to the grant of the option or the
market value of the ordinary shares on the date of
grant of the option. The HSBC Holdings Group
Share Option Plan will terminate on 26 May 2005
unless the Directors resolve to terminate the Plan at
an earlier date.