HSBC 2010 Annual Report Download - page 357

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Overview Operating & Financial Review Governance Financial Statements Shareholder Information
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 were exchangeable for HSBC Holdings ordinary shares
at the ratio of 14.917916 HSBC Holdings ordinary shares for each HSBC France.
During 2010, no employee share options (2009: nil) were exercised and no HSBC France shares were issued and
exchanged for HSBC Holdings ordinary shares (2009: nil). During 2010, 604,250 options over HSBC France shares
lapsed (2009: 183,627). At 31 December 2010, there are no employee share options outstanding and the HSBC
Holdings Employee Benefit Trust 2001 (No. 1) held no (2009: 9,963,718) HSBC Holdings ordinary shares to
exchange for HSBC France shares arising from the exercise of options.
HSBC France options effectively outstanding over HSBC Holdings ordinary shares
Number of
HSBC France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2010 .......................................................... – – –
31 December 2009 ........................................................... 604,250 2010 €142.50
31 December 2008 ........................................................... 787,877 2009 to 2010 €81.71 – 142.50
HSBC Private Bank France plan
There are also outstanding options over the shares of HSBC Private Bank France, a subsidiary of HSBC France.
On exercise of the options, the HSBC Private Bank France shares are exchangeable for HSBC Holdings ordinary
shares at the ratio of 2.099984 HSBC Holdings ordinary shares for each HSBC Private Bank France share. During
2010, 4,420 (2009: 33,456) HSBC Private Bank France shares were issued following the exercise of employee share
options and exchanged for 9,281 (2009: 70,248) HSBC Holdings ordinary shares, such shares being delivered from
The CCF Employee Benefit Trust 2001 (Private Banking France). During 2010, no options over HSBC Private Bank
France shares lapsed (2009: 9,000). At 31 December 2010, The CCF Employee Benefit Trust 2001 (Private Banking
France) held 989,502 (2009: 998,783) HSBC Holdings ordinary shares which may be exchanged for HSBC Private
Bank France shares arising from the exercise of options.
HSBC Private Bank France options effectively outstanding over HSBC Holdings ordinary shares
Number of HSBC
Private Bank France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2010 .......................................................... 287,100 2011 to 2012 €20.80 – 22.22
31 December 2009 ........................................................... 291,520 2010 to 2012 €12.44 – 22.22
31 December 2008 ........................................................... 333,976 2009 to 2012 €10.84 – 22.22
HSBC Finance plan
Following the acquisition of HSBC Finance in 2003, all outstanding options and equity-based awards over HSBC
Finance common shares were converted into rights to receive HSBC Holdings ordinary shares in the same ratio as the
share exchange offer for HSBC Finance (2.675 HSBC Holdings ordinary shares for each HSBC Finance common
share) and the exercise prices per share adjusted accordingly. During 2010, 306,964 options (2009: 20,000) over
HSBC Holdings ordinary shares were exercised and 306,964 (2009: 20,000) HSBC Holdings ordinary shares
delivered from The HSBC (Household) Employee Benefit Trust 2003 to satisfy the exercise of these options. During
2010, options over 6,681,169 (2009: 5,606,714) HSBC Holdings ordinary shares lapsed. At 31 December 2010, the
Trust held a total of 2,335,315 (2009: 2,642,279) HSBC Holdings ordinary shares and 1,455 (2009: 1,455) ADSs,
which may be used to satisfy the exercise of these options and equity-based awards under the HSBC Finance share
plans. Each ADS represents five HSBC Holdings ordinary shares.