HSBC 2003 Annual Report Download - page 227

Audited information
225
Accrued
annual
pension at
31 December
2003
Increase in
accrued
pension
during 2003
Increase in
accrued
pension
during 2003,
excluding
any increase
for inflation
Transfer
value
of accrued
pension at
1 January
2003
Transfer
value
of accrued
pension at
31 December
2003
Increase o
f
transfer value o
f
accrued pension
(less personal
contributions)
in 2003
Transfer value
(less personal
contributions) at
31 December
2003 relating to
increase in
accrued pensions
during 2003,
excluding any
increase for
inflation
£000 £000 £000 £0001£0001£0001£0001
Sir John Bond2 .............. 398 74 66 5,504 7,924 2,420 1,306
C F W de Croisset ......... 64 9 7 626 860 234 97
W R P Dalton ............... 274 17 14 3,680 4,258 578 212
D G Eldon3 ................... 251 17 11 4,703 5,045 3424205
S K Green ..................... 178 19 15 1,901 2,367 466 193
A W Jebson5 ................. 141 17 14 1,384 1,769 385 175
Sir Keith Whitson6 ........ – 36 29 4,514 5,713 1,199 611
1The transfer value represents a liability of HSBC’s pension funds and not a sum paid or due to the individual; it cannot therefore
meaningfully be added to annual remuneration.
2On attaining age 60, Sir John Bond has been able, under the terms of the scheme, to retire at any time with an immediate pension equal
to his accrued pension which, at 31 December 2003, is shown above.
3On attaining age 53, D G Eldon has been able, under the terms of the scheme, to retire at any time with an immediate pension equal to
his accrued pension which, at 31 December 2003, is shown above.
4D G Eldon made personal contributions towards his pension of £14,625 in respect of 2003.
5A W Jebson’s entitlement has been supplemented by an employer contribution of £175,000 in return for the prior waiver of part of his
bonus in respect of 2002.
6Sir Keith Whitson retired from the Group with effect from 30 May 2003, with a gross pension of £287,472 per annum. Sir Keith Whitson
elected to commute part of this pension for a lump sum payment of £664,825 leaving a residual pension of £233,737 per annum. As a
result, the pension in payment at 31 December 2003 is lower than the accrued pension at 1 January 2003. The increase in accrued
pension during 2003 reflects the gross pension before commutation. The transfer value of benefits at 31 December 2003 reflects both
the pension in payment and the commutation lump sum, increased with interest.
The following unfunded pension payments, in
respect of which provision has been made, were
made during 2003 to four former Directors of HSBC
Holdings:
2003
£
2002
£
B H Asher ................... 83,277 81,564
R Delbridge ................. 119,777 117,313
Sir Brian Pearse ........... 49,947 48,918
Sir William Purves ....... 88,158 86,343
341,159 334,138
The payments in respect of R Delbridge and Sir
Brian Pearse were made by HSBC Bank plc as
former Directors of the bank.
Share options
At 31 December 2003, the undernamed Directors
held options to acquire the number of HSBC
Holdings ordinary shares set against their respective
names. The options were awarded for nil
consideration at exercise prices equivalent to the
market value at the date of award, except that options
awarded under the HSBC Holdings savings-related
share option plans before 2001 are exercisable at a
15 per cent discount to the market value at the date
of award and those awarded since 2001 at a 20 per
cent discount. The options are categorised as unlisted
physically settled share options under the Securities
and Futures Ordinance of Hong Kong.
Except as otherwise indicated, no options were
exercised or lapsed during the year and there are no
remaining performance criteria conditional upon
which the outstanding options are exercisable. The
market value of the ordinary shares at 31 December
2003 was £8.78. The highest and lowest market
values during the year were £9.135 and £6.31.
Market value is the mid-market price derived from
the London Stock Exchange Daily Official List on
the relevant date.
On 27 August 2003, a payment of £400,000
was made to J M Gray, a former director of the
Company and Chairman of The Hongkong and
Shanghai Banking Corporation Limited, who
retired in 1996. The payment, which was effected
after having taken legal advice, represents
compensation in respect of losses suffered by Mr