HSBC 2008 Annual Report Download - page 435

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or after 15 April 2013 at their principal amounts together with any accrued, unpaid and deferred coupon payments.
While any coupon payments are unpaid or deferred, HSBC Holdings will not declare, pay dividends or make
distributions or similar periodic payments in respect of, or repurchase, redeem or otherwise acquire any securities of
lower or equal rank. At the Company’s discretion, and subject to certain conditions being satisfied, the Capital
Securities may be exchanged on any coupon payment date for non-cumulative preference shares to be issued by
HSBC Holdings and which would rank pari passu with the dollar preference shares in issue at 2 March 2009. The
preference shares will be issued at a nominal value of US$0.01 per share and a premium of US$24.99 per share, with
both such amounts being subscribed and fully paid.
Shares under option
Details of the options outstanding to subscribe for HSBC Holdings ordinary shares under the HSBC Holdings Group
Share Option Plan, HSBC Holdings Executive Share Option Scheme, the HSBC Share Plan and HSBC Holdings
savings-related share option plans are given in Note 10. In aggregate, options outstanding under these plans were as
follows:
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2008 ........................................ 211,226,573 2009 to 2015 £5.3496 – 9.642
11,344,167 2009 to 2014 HK$103.4401 – 108.4483
1,304,119 2009 to 2014 €8.6720 – 11.0062
7,382,145 2009 to 2014 US$13.3290 – 14.7478
31 December 2007 ......................................... 240,726,775 2008 to 2015 £5.3496 – 9.642
12,839,412 2008 to 2013 HK$103.4401 – 108.4483
823,472 2008 to 2013 €10.4217 – 11.0062
6,324,920 2008 to 2013 US$13.3290 – 14.7478
31 December 2006 ......................................... 269,423,027 2007 to 2015 £5.0160 – 9.642
6,661,998 2007 to 2012 HK$103.4401
270,473 2007 to 2012 €11.0062
2,932,100 2007 to 2012 US$13.3290 – 14.1621
HSBC France and subsidiary company plans
Following the acquisition of HSBC France in 2000, outstanding employee share options over HSBC France shares
vested. On exercise of the options, the HSBC France shares are exchangeable for HSBC Holdings ordinary shares in
the same ratio as for the acquisition of HSBC France (13 HSBC Holdings ordinary shares for each HSBC France
share).
During 2008, 221,154 (2007: 280,850) HSBC France shares were issued following the exercise of employee share
options and were exchanged for 2,875,002 HSBC Holdings ordinary shares. These shares were delivered from the
HSBC Holdings Employee Benefit Trust 2001 (No. 1) (2007: 3,651,050 HSBC Holdings ordinary shares). During
2008, no options over HSBC France shares lapsed (2007: nil). During 2007 and 2008 no HSBC France shares
previously issued following the exercise of employee share options were exchanged for HSBC Holdings ordinary
shares. At 31 December 2008, The HSBC Holdings Employee Benefit Trust 2001 (No. 1) held 8,790,276 (2007:
11,665,278) HSBC Holdings ordinary shares which may be exchanged for HSBC France shares arising from the
exercise of options.
HSBC France options effectively outstanding over HSBC Holdings ordinary shares under this arrangement were as
follows:
Number of
HSBC France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2008 ............................................... 787,877 2009 to 2010 €81.71 – 142.50
31 December 2007 ................................................ 1,009,031 2008 to 2010 €73.48 – 142.50
31 December 2006 ................................................ 1,287,881 2007 to 2010 €37.05 – 142.50