HSBC 2003 Annual Report Download - page 350

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
348
Household
Options granted under Household’ s own share option schemes prior to the announcement of the acquisition by
HSBC in November 2002 vested upon acquisition by HSBC. Options granted after the announcement of the
acquisition in November 2002 but prior to 28 March 2003, generally vest equally over 4 years and expire 10
years from the date of grant. Upon acquisition, Household share options previously granted were converted to
share options over HSBC ordinary shares of US$0.50 each at a rate of 2.675 HSBC share options (the same
ratio as the Exchange Offer for Household) for each Household share option.
Information with respect to share options granted under the former Household schemes is as follows:
2003
Weighted
average
Number price
(000’s) US$
Household share options outstanding at 28 March 2003 ....................................................... 19,180 37.20
Conversion to HSBC share options....................................................................................... 51,306 13.90
Exercised in the year............................................................................................................. (4,750) 5.00
Forfeited in the year .............................................................................................................. (1,362) 16.49
Outstanding at end of year .................................................................................................... 45,194 14.76
Of which exercisable............................................................................................................. 39,743 15.32
The weighted average contractual life for options outstanding at the balance sheet date is disclosed in the table
below:
Options outstanding Options exercisable
Weighted Weighted Weighted
average average average
Number remaining life exercise price Number exercise price
(000’ s) years US$ (000’ s) US$
Range of exercise prices
$ 4.01 – $ 5.00 ........................... 255 0.68 4.17 255 4.17
$ 5.01 – $10.00 ........................... 4,943 1.98 6.92 4,943 6.92
$10.01 – $12.50 ........................... 10,166 7.22 10.87 4,715 11.11
$12.51 – $15.00 ........................... 9,565 4.46 14.11 9,565 14.11
$15.01 – $17.50 ........................... 6,234 5.65 16.95 6,234 16.95
$17.51 – $20.00 ........................... 6,460 6.85 18.41 6,460 18.41
$20.01 – $25.00 ........................... 7,571 7.87 21.37 7,571 21.37
45,194 39,743