HSBC 2001 Annual Report Download - page 259

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third and tenth anniversaries of the date of grant, subject to vesting conditions. No further grants will be made
under the Scheme following the adoption of the Group Share Option Plan in 2000.
2001 2000 1999
Number
Wei
g
hte
d
average
exercise
price Number
Weighte
d
average
exercise
price Number
Weighte
d
average
exercise
price
(000’s) £ (000’ s) £ (000’ s) £
Outstanding at beginning of year 109,424 6.56 84,765 6.10 15,093 4.45
Granted in the year..........................
–
–32,789 7.46 72,539 6.38
Exercised in the year....................... (3,236) 5.34 (4,059) 4.11 (1,207) 2.65
Less: Forfeited in the year............... (3,478) 6.53 (4,071) 6.65 (1,660) 5.86
Outstanding at end of year .............. 102,710 6.60 109,424 6.56 84,765 6.10
The weighted average fair value of options as at the date of grant during 2000 was £3.29 (1999: £2.57).
The weighted average exercise price of options granted in 1998 was £6.28 (1997: £5.04).
The number of options, weighted average exercise price and the weighted average remaining contractual life for
options outstanding at the balance sheet date, analysed by exercise price range, are as follows:
2001 2000 1999
Exercise price range (£)..................... £2.17 - £6.00 £6.01 - £7.87 £2.17 - £6.00 £6.01 - £7.87 £2.17 - £6.00 £6.01 - £7.87
Number (‘000)................................... 4,116 98,594 5,600 103,824 9,099 75,666
Weighted average exercise price (£).. 3.94 6.71 3.86 6.71 3.81 6.37
Weighted average remaining
contractual life (years)..................... 4.55 7.52 5.49 8.51 6.46 9.18
Of which exercisable:
Number (‘000)................................... 4,116 3,170 5,600 35 5,415 –
Weighted average exercise price (£).. 3.94 6.28 3.86 7.80 2.99 –
Group Share Option Plan
The Group Share Option Plan is a long-term incentive plan available to certain HSBC employees that was
adopted by HSBC during 2000. Options are granted at market value and are normally exercisable between the
third and tenth anniversaries of the date of grant, subject to vesting conditions.
2001 2000
Number Wei
g
hted avera
ge
exercise price Number Weighted average exercise price
(000’s) £ (000’ s) £
Outstanding at beginning of year ......... 455 9.64 –
–
Granted in the year................. 51,357 8.71 460 9.64
Less: Forfeited in the year...... (987) 8.72 (5) 9.64
Outstanding at end of year ..... 50,825 8.72 455 9.64
The weighted average fair value of options granted in the year as at the date of grant was £2.35 (2000: £3.10).
The number of options, weighted average exercise price, and the weighted average remaining contractual life
for options outstanding at the balance sheet date, analysed by exercise price range, are below. None of these
options were exercisable at 31 December 2001 or 2000.