HSBC 2005 Annual Report Download - page 323

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December 2005, 14,819 (2004: 1,125) HSBC Private Bank France shares were in issue and will be exchanged for
HSBC Holdings ordinary shares on the fourth anniversary of the date of the awards of the options. There were
597,660 HSBC Private Bank France employee share options exchangeable for HSBC Holdings ordinary shares
outstanding at 31 December 2005 (2004: 1,130,935). At 31 December 2005, The CCF Employee Benefit Trust 2001
held 1,452,775 (2004: 2,294,066) 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 (including shares issued but not exchanged) effectively outstanding over HSBC
Holdings ordinary shares under this arrangement are as follows:
Number of HSBC
Private Bank France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2005 .............................................. 612,479 2006 to 2012 €10.84 – €22.22
31 December 2004 ................................................ 1,132,060 2005 to 2012 €10.84 – €22.22
31 December 2003 ............................................... 1,359,810 2004 to 2012 €10.84 – €22.22
On the acquisition of Banque Hervet in 2001, Banque Hervet shares were held in a Plan d’Epargne Entreprise on
behalf of Banque Hervet employees to vest and be released to employees over a 5 year period. It was agreed to
exchange these Banque Hervet shares, on vesting, for HSBC Holdings ordinary shares in the ratio of 3.46 HSBC
Holdings ordinary shares for each Banque Hervet share. During 2005, 7,670 (2004: 44,870) Banque Hervet shares
were released in connection with the vesting of interests in the Plan d’Epargne Entreprise and exchanged for 26,539
(2004: 155,219) HSBC Holdings ordinary shares, such shares being delivered from The CCF Employee Benefit Trust
2001 (Banque Hervet). At 31 December 2005, The CCF Employee Benefit Trust 2001 (Banque Hervet) held 586,213
(2004: 612,752) HSBC Holdings ordinary shares which may be exchanged for Banque Hervet shares from the
vesting of interests.
Banque Hervet shares to be exchanged for HSBC Holdings ordinary shares under this arrangement are as follows:
Number of Banque
Hervet shares
exchangeable for
HSBC Holdings
ordinary shares Period of vesting
31 December 2005 ............................................................................................. 169,416 2006
31 December 2004 ............................................................................................... 177,086 2005 – 2006
31 December 2003 .............................................................................................. 221,956 2004 – 2006
Following the acquisition of HSBC Finance Corporation in 2003, all outstanding options and equity-based awards
over HSBC Finance Corporation common shares were converted into rights to receive HSBC Holdings ordinary
shares in the same ratio as the share exchange offer for HSBC Finance Corporation (2.675 HSBC Holdings ordinary
shares for each HSBC Finance Corporation common share) and the exercise prices per share adjusted accordingly.
During 2005, options over 3,563,020 (2004: 6,073,291) HSBC Holdings ordinary shares were exercised and
2,638,816 (2004: 5,771,110) HSBC Holdings ordinary shares delivered from The HSBC (Household) Employee
Benefit Trust 2003 to satisfy the exercise of these options. During 2005, options over 152,936 (2004: 415,430)
HSBC Holdings ordinary shares lapsed. At 31 December 2005, The HSBC (Household) Employee Benefit Trust
2003 held 3,006,623 (2004: 5,645,439) HSBC Holdings ordinary shares and 2,198,829 (2004: 2,200,000) ADSs,
each of which represents five HSBC Holdings ordinary shares, which may be used to satisfy the exercise of these
options and equity-based awards under the HSBC Finance Corporation share plans.
Options and equity-based awards outstanding over HSBC Holdings ordinary shares under the HSBC Finance
Corporation share plans are as follows:
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2005 .............................................. 38,107,930 2006 to 2012 nil – US$21.37
31 December 2004 ............................................... 41,823,886 2005 to 2021 nil – US$25.40
31 December 2003 ............................................... 48,312,607 2004 to 2021 nil – US$25.40