HSBC 2004 Annual Report Download - page 196

HSBC HOLDINGS PLC
Report of the Directors (continued)
194
HSBC Holdings Savings-Related Share Option Plan: Overseas Section
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (£)
Exercisable
from1
Exercisable
until2
Options at
1 January
2004
Options
awarded
during year
Options
exercised
during year3
Options
lapsed
during year
Options at
31 December
2004
6 Apr 1998 5.2212 1 Aug 2003 31 Jan 2004 78,234 – 39,315 38,919 –
1 Apr 1999 5.3980 1 Aug 2004 31 Jan 2005 10,942,536 – 10,673,901 98,247 170,388
10 Apr 2000 6.0299 1 Aug 2005 31 Jan 2006 16,622,178 – 273,551 661,486 15,687,141
11 Apr 2001 6.7536 1 Aug 2004 31 Jan 2005 5,773,078 – 5,091,195 307,840 374,043
11 Apr 2001 6.7536 1 Aug 2006 31 Jan 2007 1,459,237 – 9,233 108,759 1,341,245
2 May 2002 6.3224 1 Aug 2005 31 Jan 2006 3,393,662 – 19,040 310,873 3,063,749
2 May 2002 6.3224 1 Aug 2007 31 Jan 2008 1,224,697 – 3,949 69,419 1,151,329
23 Apr 2003 5.3496 1 Aug 2006 31 Jan 2007 10,459–––10,459
23 Apr 2003 5.3496 1 Aug 2008 31 Jan 2009 10,488–––10,488
8 May 2003 5.3496 1 Aug 2006 31 Jan 2007 17,432,578 – 67,416 980,573 16,384,589
8 May 2003 5.3496 1 Aug 2008 31 Jan 2009 6,500,298 – 9,744 224,861 6,265,693
21 Apr 2004 6.4720 1 Aug 2007 31 Jan 2008 – 49,5244– – 49,524
21 Apr 2004 6.4720 1 Aug 2009 31 Jan 2010 – 14,4884– – 14,488
10 May 2004 6.4720 1 Aug 2007 31 Jan 2008 – 10,550,55053,358 428,360 10,118,832
10 May 2004 6.4720 1 Aug 2009 31 Jan 2010 – 3,334,9075605 61,698 3,272,604
1May be advanced to an earlier date in certain circumstances, e.g. retirement.
2May be extended to a later date in certain circumstances, e.g. on the death of a participant, the executors may exercise the option up
to six months beyond the normal exercise period.
3The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.11.
4The closing price per share on 20 April 2004, the day before the options were awarded, was £8.29.
5The closing price per share on 9 May 2004, the day before the options were awarded, was £8.12.
HSBC Holdings Savings-Related Share Option Scheme: USA Section
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (£)
Exercisable
from1
Exercisable
until2
Options at
1 January
2004
Options
exercised
during year3
Options
lapsed
during year
Options at
31 December
2004
10 Aug 1999 6.3078 1 Jul 2004 31 Dec 2004 1,477,642 949,150 – 528,492
1May be advanced to an earlier date in certain circumstances, e.g. retirement.
2May be extended to a later date in certain circumstances, e.g. on the death of a participant, the executors may exercise the option up to
six months beyond the normal exercise period.
3The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.33.
No options were granted during the period.
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 to acquire HSBC Holdings ordinary shares.
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 are
being 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 generally exercisable between the third and tenth
anniversary of 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 of the sale or transfer 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.