HSBC 2004 Annual Report Download - page 292

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
290
Number o
f
HSBC Holdings
ordinary shares US$m
At 1 January 2002 ........................................................................................................................... 9,354,627,521 4,678
Shares issued to QUEST ................................................................................................................. 6,147,311 3
Shares issued under other employee share plans ............................................................................. 30,460,369 15
Shares issued in lieu of dividends ................................................................................................... 89,585,595 45
At 31 December 2002 ..................................................................................................................... 9,480,820,796 4,741
The 301,500 non-voting deferred shares were in issue throughout 2002, 2003 and 2004 and are held by a subsidiary
undertaking of HSBC Holdings.
Options outstanding to subscribe for HSBC Holdings ordinary shares under the HSBC Holdings Group Share Option
Plan, HSBC Holdings Executive Share Option Scheme, and HSBC Holdings savings-related share option plans are as
follows:
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2004 .............................................. 374,369,127 2005 to 2014 £2.1727 – £9.642
31 December 2003 ............................................... 347,007,843 2004 to 2013 £2.1727 – £9.642
31 December 2002 ............................................... 307,522,913 2003 to 2012 £2.1727 – £9.642
Following the acquisition of CCF in 2000, outstanding employee share options over CCF shares vested. On exercise
of the options, the CCF shares are exchangeable for HSBC Holdings ordinary shares in the same ratio as for the
acquisition of CCF (13 HSBC Holdings ordinary shares for each CCF share).
During 2004, 451,080 (2003: 226,000; 2002: 229,066) CCF shares were issued following the exercise of employee
share options and exchanged for 5,864,040 HSBC Holdings ordinary shares (2003: 2,938,000; 2002: 2,977,858) and
1,000 (2003: 7,000) CCF shares were issued following the exercise of employee share options and will be exchanged
for 13,000 (2003: 91,000) HSBC Holdings ordinary shares on the fifth anniversary of the award. During 2004,
options over 800 (2003: 100; 2002: nil) CCF shares lapsed. During 2004, 9,500 (2003: 2,500; 2002: 5,000) CCF
shares previously issued following the exercise of employee share options were exchanged for 123,500 (2003:
32,500; 2002: 65,000) HSBC Holdings ordinary shares. At 31 December 2004, 1,500 (2003: 10,000; 2002: 5,500)
CCF shares were in issue and will be exchanged for HSBC Holdings ordinary shares on the fifth anniversary of the
award of the options. There were 2,162,780 CCF employee share options exchangeable for HSBC Holdings ordinary
shares outstanding at 31 December 2004 (2003: 2,615,660; 2002: 2,848,760). At 31 December 2004, The HSBC
Holdings Employee Benefit Trust 2001 (No. 1) held 26,787,515 (2003: 32,775,055; 2002: 35,745,555) HSBC
Holdings ordinary shares which may be exchanged for CCF shares arising from the exercise of options.
CCF options (including shares issued but not exchanged) effectively outstanding over HSBC Holdings ordinary
shares under this arrangement are as follows:
Number of CCF
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2004 .............................................. 2,164,280 2005 to 2010 €32.78 – €142.5
31 December 2003 ............................................... 2,625,660 2004 to 2010 €32.78 – €142.5
31 December 2002 ............................................... 2,854,260 2003 to 2010 €32.78 – €142.5
There also exist outstanding options over the shares of various CCF subsidiaries which are exchangeable for
HSBC Holdings ordinary shares, the details of which are set out in the Directors’ Report on pages 196 to 197 and
summarised below. On exercise of options over shares of Sinopia Asset Management (‘Sinopia’ ) the Sinopia shares
are exchangeable for HSBC Holdings ordinary shares in the ratio of 2.143 HSBC Holdings ordinary shares for each
Sinopia share. During 2004, 94,000 (2003: 94,400; 2002: 91,200) Sinopia shares were issued following the exercise
of employee share options and exchanged for 201,439 (2003: 202,296; 2002: 195,439) HSBC Holdings ordinary
shares. During 2004, options over 2,000 (2003: nil; 2002: 25,000) Sinopia shares lapsed. At 31 December 2004, The
CCF Employee Benefit Trust 2001 held 281,814 (2003; 483,253; 2002: 685,549) HSBC Holdings ordinary shares
which may be exchanged for Sinopia shares arising from the exercise of options.