HSBC 2003 Annual Report Download - page 348

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
346
2003 2002 2001
Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price
(000’s) £ (000’ s) £ (000’ s) £
Outstanding at 1 January ............................. 106,164 8.55 50,825 8.72 455 9.64
Granted in the year ...................................... 62,118 7.07 57,236 8.40 51,357 8.71
Exercised in the year ................................... (2
)
8.52 ––––
Forfeited in the year .................................... (4,283
)
8.19 (1,897
)
8.62 (987
)
8.72
Outstanding at 31 December........................ 163,997 8.00 106,164 8.55 50,825 8.72
The weighted average fair value of options granted in the year as at the date of grant was US$3.13 (2002:
US$2.33; 2001: US$3.39).
The number of options, weighted average exercise price, and the weighted average remaining contractual life
for options outstanding at the balance sheet date, analysed by exercise price range, are set out below:
2003 2002 2001
Exercise price range (£) ........................ 6.00 – 8.0
0
8.01 – 10.0
0
6.00 – 8.0
0
8.01 – 10.0
0
8.01 – 10.00
Number (000’s) ..................................... 56,98
0
107,01
7
46
9
105,695 50,825
Weighted average exercise price (£) ..... 6.9
1
8.5
7
7.4
6
8.55 8.7
2
Weighted average remaining
contractual life (years) ...................... 9.3
3
7.6
6
9.6
6
8.83 9.3
0
Of which exercisable:
Number (000’s) ................................
–
39
6
–
–
–
Weighted average exercise price (£) .
–
9.6
4
–
–
–
Savings-Related Share Option Plans
The Savings-Related Share Option Plans invite eligible employees to enter into savings contracts to save up to
£250 per month, with the option to use the savings to acquire shares. The aim of the plan is to align the interests
of all employees to the creation of shareholder value. The options are exercisable within six months following
either the third or the fifth anniversary of the commencement of the savings contract depending on conditions
set at grant. The exercise price is at a 20 per cent (2002: 20 per cent; 2001: 20 per cent) discount to the market
value at the date of grant.
2003 2002 2001
Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price
(000’s) £ (000’ s) £ (000’ s) £
Outstanding at 1 January ............................ 121,520 5.97 130,450 5.76 121,312 5.25
Granted in the year ..................................... 48,313 5.35 19,828 6.32 28,832 6.75
Exercised in the year .................................. (14,630
)
5.13 (16,455
)
4.73 (12,601
)
3.14
Forfeited in the year ................................... (31,887
)
6.29 (12,303
)
5.90 (7,093
)
5.82
Outstanding at 31 December ...................... 123,316 5.75 121,520 5.97 130,450 5.76
The maximum term of options granted in the year is 51/2 years from the date of grant (2002 and
2001: 51/2 years).
The weighted average fair value of options granted in the year as at the date of grant was US$3.09 (2002:
US$3.58; 2001: US$3.68).