HSBC 2009 Annual Report Download - page 407

405
2009
Number
2008
Number
(000s) (000s)
Outstanding at 1 January ......................................................................................................................... 2,717 19,299
Additions during the year1 ....................................................................................................................... 30 934
Adjustment for rights issue ...................................................................................................................... 376 –
Released in the year ................................................................................................................................. (2,916) (16,405)
Forfeited in the year ................................................................................................................................. (34) (1,111)
Outstanding at 31 December ................................................................................................................... 173 2,717
1 Additions during the year principally comprised reinvested dividend equivalents.
The weighted average remaining vesting period as at 31 December 2009 was 0.3 years (2008: 0.5 years).
HSBC Holdings Group Share Option Plan
The HSBC Holdings Group Share Option Plan was a long-term incentive plan under which certain HSBC employees
between 2000 and 2005 were awarded share options. The aim of the plan was to align the interests of those higher
performing employees with the creation of shareholder value. In most jurisdictions, this was achieved by setting
certain TSR targets which would normally have to be attained in order for the awards to vest. Options were granted at
market value and are normally exercisable between the third and tenth anniversaries of the date of grant, subject to
vesting conditions. Options granted after May 2005 are made under the HSBC Share Plan.
2009 2008
Number
Weighted
average
exercise
price Number
Weighted
average
exercise
price
(000s) £ (000s) £
Outstanding at 1 January .......................................................... 142,593 8.16 152,216 8.15
Adjustment for rights issue ....................................................... 21,333 7.12 – –
Exercised in the year ................................................................. (1,548) 6.28 (3,734) 7.38
Forfeited and expired in the year .............................................. (4,659) 7.15 (5,889) 8.28
Outstanding at 31 December .................................................... 157,719 7.12 142,593 8.16
The weighted average share price at the date the share options were exercised was US$9.14 (2008: US$14.65). The
number of options, weighted average exercise price, and weighted average remaining contractual life of options
outstanding at the balance sheet date, analysed by exercise price range, were as follows:
2009 2008
Exercise price range (£) ............................................................. 6.00-7.00 7.01-8.50 6.00-8.00 8.01-10.00
Number (000s) .......................................................................... 28,406 129,313 25,947 116,646
Weighted average exercise price (£) ........................................ 6.03 7.36 6.91 8.44
Weighted average remaining contractual life (years) ............... 3.33 3.34 4.33 4.34
Of which exercisable:
Number (000s) ...................................................................... 28,406 129,313 25,947 116,646
Weighted average exercise price (£) .................................... 6.03 7.36 6.91 8.44
HSBC Holdings Executive Share Option Scheme
The HSBC Holdings Executive Share Option Scheme was a long-term incentive plan under which certain senior
HSBC employees were awarded share options before the adoption of the HSBC Holdings Group Share Option Plan
in 2000. The aim of the plan was to align the interests of those higher performing senior employees with the creation
of shareholder value. This was achieved by setting certain TSR targets to be attained in order for the awards to vest.
Options were granted at market value and were exercisable between the third and tenth anniversaries of the date of
grant, subject to vesting conditions. No awards have been made under this plan since 2000 and the remaining
unexercised options are summarised below: