HSBC 2002 Annual Report Download - page 303

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CCF
CCF granted share purchase and subscription offers to certain executives of CCF, directors and officers, as well
as to certain senior executives of subsidiaries.
Options granted between 1994 and 1999 vested upon announcement of HSBC’ s intent to acquire CCF and were
therefore included in the valuation of CCF.
CCF granted 909,000 options in 2000 after the public announcement of the acquisition and these options did not
vest as a result of the change in control. The options were subject to continued employment and vested on 1
January 2002. The CCF shares obtained on exercise of the options are exchangeable for HSBC’ s ordinary
shares of US$0.50 each in the same ratio as the Exchange Offer for Crédit Commercial de France shares (13
ordinary shares of US$0.50 for each CCF share). Options are granted at market value and are exercisable within
10 years of the vesting date.
2002 2001 2000
Number
Wei
g
hte
d
average
exercise
price Number
Weighte
d
average
exercise
price Number
Weighte
d
average
exercise
price
(000’s) Euro (000’ s) Euro (000’ s) Euro
Outstanding at beginning of year 861 142.50 908 142.50
–
–
Granted in the year –
–
–
–
909 142.50
Less: Exercised in the year (4 )142.50 –
–
–
–
Less: Forfeited in the year –
–
(47)142.50 (1) 142.50
Outstanding at end of year 857 142.50 861 142.50 908 142.50
The weighted average exercise price of options granted during 2000 was Euro142.50, the fair value as at the
date of grant was US$62.97 and the weighted average remaining contractual life for options outstanding at the
balance sheet date was 9 years.
Restricted Share Plan
Conditional awards under the Restricted Share Plan
Conditional awards under the Restricted Share Plan have been in operation since 1996. It is intended to align the
interests of executives to the creation of shareholder value. This is achieved by setting certain Total Shareholder
Return targets which must normally be attained in order for the awards to vest.
2002 2001 2000
Number Number Number
(000’s) (000’ s) (000’ s)
Outstanding at beginning of year ............................................ 6,197 4,092 2,085
Additions during the year........................................................ 3,667 2,564 2,085
Less: Released in the year....................................................... (261) (210)
–
Less: Forfeited in the year....................................................... (63) (249) (78)
Outstanding at end of year ...................................................... 9,540 6,197 4,092
The weighted average purchase price for shares purchased by HSBC for conditional awards under the Restricted
Share Plan in 2002 was US$12.08 (2001: US$13.37; 2000: US$10.70).
The weighted average remaining vesting period as at 31 December 2002 was 2.98 years (2001: 3.29 years;
2000: 3.25 years).
The 2003 conditional awards from the Restricted Share Plan in respect of 2002 will have an aggregate value at
the date of award of US$18.4 million (2002 awards in respect of 2001: US$15.2 million).