HSBC 2009 Annual Report Download - page 462

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 37 and 38
460
HSBC France options effectively outstanding over HSBC Holdings ordinary shares under this arrangement were as
follows:
Number of
HSBC France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2009 ....................................................... 604,250 2010 €142.50
31 December 2008 ........................................................ 787,877 2009 to 2010 €81.71 – 142.50
31 December 2007 ........................................................ 1,009,031 2008 to 2010 €73.48 – 142.50
HSBC Private Bank France plan
There are also outstanding options over the shares of HSBC Private Bank France, a subsidiary of HSBC France.
On exercise of the options, the HSBC Private Bank France shares are exchangeable for HSBC Holdings ordinary
shares. As a consequence of the rights issue, the ratio of HSBC Holdings ordinary shares exchangeable for each
HSBC Private Bank France share was adjusted from 1.83 to 2.099984. During 2009, 33,456 (2008: 7,000) HSBC
Private Bank France shares were issued following the exercise of employee share options and exchanged for 70,248
(2008: 12,810) HSBC Holdings ordinary shares, such shares being delivered from The CCF Employee Benefit Trust
2001 (Private Banking France). During 2009, 9,000 options over HSBC Private Bank France shares lapsed (2008:
nil). At 31 December 2009, The CCF Employee Benefit Trust 2001 (Private Banking France) held 998,783 (2008:
943,142) 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 effectively outstanding over HSBC Holdings ordinary shares under this
arrangement were as follows:
Number of HSBC
Private Bank France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2009 ....................................................... 291,520 2010 to 2012 €12.44 – 22.22
31 December 2008 ........................................................ 333,976 2009 to 2012 €10.84 – 22.22
31 December 2007 ........................................................ 340,976 2008 to 2012 €10.84 – 22.22
HSBC Finance
Following the acquisition of HSBC Finance in 2003, all outstanding options and equity-based awards over HSBC
Finance common shares were converted into rights to receive HSBC Holdings ordinary shares in the same ratio as the
share exchange offer for HSBC Finance (2.675 HSBC Holdings ordinary shares for each HSBC Finance common
share) and the exercise prices per share adjusted accordingly. During 2009, 20,000 options (2008: 327,635) over
HSBC Holdings ordinary shares were exercised and 20,000 (2008: 169,138) HSBC Holdings ordinary shares
delivered from The HSBC (Household) Employee Benefit Trust 2003 to satisfy the exercise of these options. During
2009, options over 5,606,714 (2008: 718,793) HSBC Holdings ordinary shares lapsed. In April 2009, 195,000 ADSs
held in the Trust were cancelled, increasing the number of HSBC Holdings ordinary shares held by 975,000. At
31 December 2009, the Trust held a total of 2,642,279 (2008: 1,687,279) HSBC Holdings ordinary shares and 1,455
(2008: 196,455) ADSs, which may be used to satisfy the exercise of these options and equity-based awards under the
HSBC Finance share plans. Each ADS represents five HSBC Holdings ordinary shares.
Options (and, in 2008 and 2007, equity-based awards) outstanding over HSBC Holdings ordinary shares under the
HSBC Finance share plans were as follows:
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 20091 ...................................................... 18,105,959 2010 to 2012 US$9.29 – 18.62
31 December 2008 ........................................................ 20,681,582 2009 to 2012 US$10.66 – 21.37
31 December 2007 ........................................................ 21,728,010 2008 to 2012 nil – US$21.37
1 During 2009, the number and prices of unexercised share options were adjusted for the rights issue.