HSBC 2010 Annual Report Download - page 210

HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Employees > Employee share plans / Subsidiary company share plans
208
Performance Shares and Restricted Shares are made
under the HSBC Share Plan. The following are
particulars of outstanding employee share options,
including those held by employees working
under employment contracts that are regarded as
‘continuous contracts’ for the purposes of the Hong
Kong Employment Ordinance. The options were
granted at nil consideration. No options have been
granted to substantial shareholders, suppliers of
goods or services, or in excess of the individual limit
for each share plan. No options were cancelled by
HSBC during the period. A summary for each
scheme of the total number of the options which
were awarded, exercised or lapsed during 2010 is
shown in the tables below. Further details required
to be disclosed pursuant to Chapter 17 of the Rules
Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited are available on
our website at www.hsbc.com by selecting ‘Investor
Relations’, then ‘Share Plans’, and on the website
of The Stock Exchange of Hong Kong Limited at
www.hkex.com.hk or can be obtained upon request
from the Group Company Secretary, 8 Canada
Square, London E14 5HQ. Particulars of options
held by Directors of HSBC Holdings are set out on
page 232.
All-employee share option plans
All employees employed within the Group on the
first working day of the year may be granted options
to acquire HSBC Holdings ordinary shares under
shareholder-approved all-employee share option
plans. Options under the plans are usually
exercisable after one, three or five years.
The exercise of the options may be advanced to
an earlier date in certain circumstances, for example
on retirement, and may be extended in certain
circumstances, for example on the death of a
participant, the executors may exercise the option up
to six months beyond the normal exercise period.
The middle market closing price per HSBC Holdings
ordinary share quoted on the London Stock
Exchange, as derived from the Daily Official List
on 20 April 2010, the day before options were
awarded in 2010, was £6.917.
HSBC Holdings Savings-Related Share Option Plan
HSBC Holdings ordinary shares of US$0.50
Dates of award
Exercise price
(£) Exercisable
At
1 Jan
Awarded
during
Exercised
during
Lapsed
during
At
31 Dec
from to from to from to 2010 year year1 year 2010
21 Apr
2004
21 Apr
2010 3.3116 6.6870
1 Aug
2009
31 Jan
2016 76,566,328 6,183,303 4,536,734 10,475,032 67,737,865
1 The weighted average closing price of the shares immediately before the dates on which options were exercised was £6.57.
HSBC Holdings Savings-Related Share Option Plan: International
HSBC Holdings ordinary shares of US$0.50
Dates of award Exercise price Exercisable
At
1 Jan
Awarded
during
Exercised
during
Lapsed
during
At
31 Dec
from to from to from to 2010 year year1 year 2010
21 Apr
2004
21 Apr
2010
(£)
3.3116
(£)
6.6870
1 Aug
2009
31 Jan
2016 29,664,282 7,585,594 5,260,044 3,328,890 28,660,942
26 Apr
2006
21 Apr
2010
(US$)
4.8876
(US$)
12.0958
1 Aug
2009
31 Jan
2016 12,073,216 2,535,387 1,418,224 2,290,964 10,899,415
26 Apr
2006
21 Apr
2010
(€)
3.6361
(€)
9.5912
1 Aug
2009
31 Jan
2016 3,283,710 555,803 356,578 354,427 3,128,508
26 Apr
2006
21 Apr
2010
(HK$)
37.8797
(HK$)
94.5057
1 Aug
2009
31 Jan
2016 50,938,242 5,157,129 5,258,144 3,408,335 47,428,892
1 The weighted average closing price of the shares immediately before the dates on which options were exercised was £6.50.
Discretionary Share Plans
Discretionary share options were awarded under
employee share plans until 2005. There have been no
awards of discretionary options since 30 September
2005 save for an award by HSBC InvestDirect
(India) Limited before it was acquired by HSBC as
set out below. The exercise period of the options
awarded under discretionary share incentive plans
may be advanced to an earlier date in certain
circumstances, for example on the sale of a business.
Note 9 on the Financial Statements gives details on
share-based payments, including awards of
Restricted Shares made in 2010.