HSBC 2004 Annual Report Download - page 201

199
HSBC Finance Corporation
1996 Long-Term Executive Incentive Compensation Plan1
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (US$)
Exercisable
from2
Exercisable
until2
Rights at
1 January
2004
Rights
exercised
during year3
Rights
lapsed
during year
Rights at
31 December
2004
15 Nov 2002 nil 15 Nov 2005 15 Nov 2007 7,222 – – 7,222
20 Nov 2002 nil 20 Nov 2005 20 Nov 2007 1,961,448 84,317 88,047 1,789,084
2 Dec 2002 nil 2 Dec 2005 2 Dec 2007 10,701 – – 10,701
16 Dec 2002 nil 16 Dec 2005 16 Dec 2007 35,846 – – 35,846
20 Dec 2002 nil 20 Dec 2005 20 Dec 2007 180,564 10,700 5,350 164,514
2 Jan 2003 nil 2 Jan 2006 2 Jan 2008 1,338 – – 1,338
15 Jan 2003 nil 15 Jan 2006 15 Jan 2008 33,438 – 2,006 31,432
3 Feb 2003 nil 3 Feb 2006 3 Feb 2008 11,241 1,057 549 9,635
14 Feb 2003 nil 14 Feb 2006 14 Feb 2008 267,768 80,250 – 187,518
3 Mar 2003 nil 3 Mar 2006 3 Mar 2008 2,676 – 1,338 1,338
1Awards of Restricted Stock Rights which represent a right to receive shares if the employee remains in the employment of HSBC Finance
Corporation at the date of vesting.
2Restricted Stock Rights vest one-third on each of the third, fourth and fifth anniversaries of the date of award. Vesting may be advanced
to an earlier date in certain circumstances, e.g. retirement.
3The weighted average closing price of the shares immediately before the dates on which rights were exercised was £8.57.
HSBC Finance Corporation
Deferred Fee Plan for Directors
Prior to 28 March 2003, HSBC Finance Corporation
directors could choose to defer all or a portion of
their cash compensation under the Deferred Fee Plan
for Directors. At the end of the deferred period
selected by the director, all accumulated amounts
will be paid in shares in one or more instalments.
Following the acquisition of HSBC Finance
Corporation the rights to receive HSBC Finance
Corporation common shares under the plan were
converted into rights to receive HSBC Holdings
ordinary shares. No further awards will be granted
under this plan. A summary of the rights to receive
HSBC Holdings ordinary shares under this plan is
set out below. Full details are available on
www.hsbc.com by selecting ‘Investor Relations’ ,
then ‘Share plans’ or can be obtained upon request
from the Group Company Secretary, 8 Canada
Square, London E14 5HQ
.
HSBC Holdings ordinary shares of US$0.50
Dates of deferral
Range of
prices (US$) Deferral period
Rights at
1 January
2004
Rights
exercised
during year1
Rights
lapsed
during year2
Rights at
31 December
2004
1 Oct 1995 – 15 Jan 2003 5.42 – 25.40 1 Jan 2000 – 31 Dec 2021 188,406 2,106 186,300 –
1The weighted average closing price of the shares immediately before the dates on which shares were delivered was £8.57.
2In May 2004, the rights of participants to receive new HSBC Holdings ordinary shares under the Deferred Fee Plan for Directors were
transferred to the HSBC-North America Directors’ Non-Qualified Deferred Compensation Plan. Under this new plan the rights to
receive HSBC Holdings ordinary shares must be met through a grantor trust which has acquired, through market purchase, sufficient
ADSs to satisfy all the outstanding obligations to deliver HSBC Holdings ordinary shares. All rights to receive HSBC Holdings ordinary
shares under the new plan will be met solely from the HSBC Holdings ordinary shares held by the grantor trust. No further rights to
receive HSBC Holdings ordinary shares will be granted and no new HSBC Holdings ordinary shares will be issued under this plan.
HSBC Finance Corporation
Deferred Phantom Stock Plan for Directors
In 1995, the HSBC Finance Corporation Directors’
Retirement Income Plan was discontinued and the
present value of each director’ s accrued benefit was
exchanged for a deferred right to receive HSBC
Finance Corporation common shares. Following the
acquisition of HSBC Finance Corporation the rights
to receive HSBC Finance Corporation common
shares under the plan were converted into rights to
receive HSBC Holdings ordinary shares. When a
director dies or leaves the Board due to retirement or
resignation, all accumulated amounts will be
released in HSBC Holdings ordinary shares in one or
more instalments. No further awards will be granted
under this plan. A summary of the rights to receive
HSBC Holdings ordinary shares under this plan is
set out below. Full details are available on
www.hsbc.com by selecting ‘Investor Relations’ ,
then ‘Share plans’ or can be obtained upon request
from the Group Company Secretary, 8 Canada
Square, London E14 5HQ
.