HSBC 2002 Annual Report Download - page 156

HSBC HOLDINGS PLC
Report of the Directors (continued)
154
shareholders who elected to receive new shares
in lieu of the 2002 first interim dividend. The
market value per share used to calculate
shareholders’ entitlements to new shares was
US$11.5172 being the United States dollar
equivalent of £7.505.
All-Employee share plans
3. 6,040,317 ordinary shares of US$0.50 each were
issued at prices ranging from £3.059 to £6.7536
per share in connection with the exercise of
options under the HSBC Holdings Savings-
Related Share Option Plan. Options over
10,915,990 ordinary shares of US$0.50 each
lapsed.
4. 850,582 ordinary shares of US$0.50 each were
issued at prices ranging from £3.7768 to
£6.5187 per share in connection with the
exercise of options under the HSBC Holdings
Savings-Related Share Option Scheme: USA
Section.
5. The HSBC Qualifying Employee Share
Ownership Trust ("the QUEST") was
established in 1999 to satisfy options exercised
by UK participants of the HSBC Holdings
Savings-Related Share Option Plan. At 1
January 2002, the QUEST held 4,905,939
ordinary shares of US$0.50 each. During 2002,
HSBC QUEST Trustee (UK) Limited, the
corporate trustee of the QUEST, subscribed for
6,147,311 ordinary shares of US$0.50 each at
market values ranging from £6.61 to £8.43,
using funds from those employees who
exercised options under the HSBC Holdings
Savings-Related Share Option Plan. In addition,
9,564,355 ordinary shares were transferred from
the QUEST to employees who exercised options
under the HSBC Holdings Savings-Related
Share Option Plan. At 31 December 2002, the
QUEST held 1,488,895 ordinary shares of
US$0.50 each.
6. Under the authority granted by shareholders at
the Annual General Meeting in 2000, 2,542,180
ordinary shares of US$0.50 each were issued at
€10.5638 in connection with a Plan d’ Epargne
Entreprise for the benefit of non-UK resident
employees of CCF and its subsidiaries.
7. Options over 19,828,037 ordinary shares of
US$0.50 each were awarded at nil consideration
on 2 May 2002 to 41,401 HSBC employees
resident in 51 countries and territories under the
HSBC Holdings savings-related share option
plans. The options are exercisable within six
months following the third or fifth anniversary
of the commencement of the relevant savings
contracts on 1 August 2002 at a price of £6.3224
per share, a 20 per cent discount to the average
market value over the five business days
immediately preceding the date of the invitation.
Discretionary share incentive plans
8. 21,069,640 ordinary shares of US$0.50 each
were issued at prices ranging from £2.1727 to
£7.421 per share in connection with the exercise
of options under the HSBC Holdings Executive
Share Option Scheme. Options over 2,083,441
ordinary shares of US$0.50 each lapsed.
9. Options over 56,763,464 ordinary shares of
US$0.50 each were awarded at nil consideration
on 7 May 2002 under the HSBC Holdings
Group Share Option Plan. The options are
exercisable between the third and 10th
anniversaries of the award at a price of £8.4050
per share, the market value of the ordinary
shares on the date of award.
10. Options over 472,050 ordinary shares of
US$0.50 each were awarded at nil consideration
on 30 August 2002 under the HSBC Holdings
Group Share Option Plan. The options are
exercisable between the third and 10th
anniversaries of the award at a price of £7.455
per share, the average market value over the five
business days immediately preceding the date of
the award. Options over 1,896,660 ordinary shares
of US$0.50 each lapsed.
Redemption of HSBC Holdings plc 11.69 per cent
Subordinated Bonds 2002 of £1.
11. On 31 July 2002, HSBC Holdings redeemed
£413,000,000 11.69 per cent Subordinated
Bonds 2002 of £1 each.
Authority to repurchase shares
12. At the Annual General Meeting in 2002
shareholders gave authority for the Company to
make market repurchases of up to 935,560,000
ordinary shares of US$0.50 each. Your
Directors have not exercised this authority.