HSBC 2008 Annual Report Download - page 381

379
2008 2007
Number Number
(000s) (000s)
Outstanding at 1 January ................................................................................................................... 4,811 12,328
Additions during the year1 ................................................................................................................. 159 301
Released in the year ........................................................................................................................... (11) (2,332)
Forfeited in the year ........................................................................................................................... (4,959) (5,486)
Outstanding at 31 December ............................................................................................................. – 4,811
1 Additions during the year comprised reinvested scrip dividends.
There was no weighted average remaining vesting period at 31 December 2008 (2007: 0.2 years).
Restricted share awards made under the Restricted Share Plan
Restricted share awards under the Restricted Share Plan were granted to eligible employees from 2000 to 2005, after
taking into account the employees’ performance in the previous year, their potential and retention requirements.
Restricted shares were also awarded as part-deferral of annual bonuses or for recruitment purposes. Shares were
awarded without corporate performance conditions and generally vest between one and three years from the date of
award, providing the employees have remained continuously employed by HSBC for the period.
2008
Number
2007
Number
(000s) (000s)
Outstanding at 1 January ................................................................................................................... 19,299 38,670
Additions during the year1 ................................................................................................................. 934 199
Released in the year ........................................................................................................................... (16,405) (17,156)
Forfeited in the year ........................................................................................................................... (1,111) (2,414)
Outstanding at 31 December ............................................................................................................. 2,717 19,299
1 Additions during the year comprised reinvested scrip dividends and reinstatement of awards.
The weighted average remaining vesting period as at 31 December 2008 was 0.5 years (2007: 0.3 years).
HSBC Holdings Group Share Option Plan
The HSBC Holdings Group Share Option Plan was a long-term incentive plan under which certain HSBC employees
between 2000 and 2005 were awarded share options. The aim of the plan was to align the interests of those higher
performing employees with the creation of shareholder value. This was achieved by setting certain TSR targets which
would normally have to be attained in order for the awards to vest. Options were granted at market value and are
normally exercisable between the third and tenth anniversaries of the date of grant, subject to vesting conditions.
Options granted after May 2005 are made under the HSBC Share Plan.
2008 2007
Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price
(000s) £ (000s) £
Outstanding at 1 January .............................................. 152,216 8.15 168,786 8.09
Exercised in the year ..................................................... (3,734) 7.38 (8,351) 7.64
Forfeited and expired in the year .................................. (5,889) 8.28 (8,219) 8.02
Outstanding at 31 December ........................................ 142,593 8.16 152,216 8.15
The weighted average share price at the date the share options were exercised was US$14.65 (2007: US$18.08). The
number of options, weighted average exercise price, and weighted average remaining contractual life of options
outstanding at the balance sheet date, analysed by exercise price range, were as follows: