HSBC 2004 Annual Report Download - page 194

HSBC HOLDINGS PLC
Report of the Directors (continued)
192
participants of the HSBC Holdings Savings-
Related Share Option Plan. At 1 January 2004,
the QUEST held 514,293 ordinary shares.
During 2004, HSBC QUEST Trustee (UK)
Limited, the corporate trustee of the QUEST,
transferred 1,592,371 ordinary shares from the
QUEST to employees who exercised options
under the HSBC Holdings Savings-Related
Share Option Plan and subscribed for 1,079,099
ordinary shares at market values ranging from
£7.84 to £9.38 using subscription moneys
received from those employees. At 31
December 2004, the QUEST held 1,021
ordinary shares.
7. 4,216,456 ordinary shares were issued at €9.679
per share in connection with a Plan d’ Epargne
Entreprise for the benefit of non-UK resident
employees of CCF and its subsidiaries.
8. Options over 11,154,679 ordinary shares were
awarded at nil consideration on 21 April 2004
and options over 13,885,457 ordinary shares
were awarded at nil consideration on 10 May
2004 to over 46,000 HSBC employees resident
in more than 56 countries and territories under
the HSBC Holdings savings-related share option
plans. The options are exercisable within six
months following the third or fifth anniversary
of the commencement of the relevant savings
contracts on 1 August 2004 at a price of £6.472
per share, a 20 per cent discount to the average
market value over the five business days
immediately preceding the date of the invitation.
Discretionary share incentive plans
9. 14,905,692 ordinary shares were issued at prices
ranging from £2.1727 to £7.46 per share in
connection with the exercise of options under
the HSBC Holdings Executive Share Option
Scheme. Options over 812,836 ordinary shares
lapsed.
10. 1,460,399 ordinary shares were issued at prices
ranging from £6.91 to £8.712 per share in
connection with the exercise of options under
the HSBC Holdings Group Share Option Plan.
Options over 5,548,707 ordinary shares lapsed.
11. Options over 63,341,879 ordinary shares were
awarded at nil consideration on 30 April 2004
under the HSBC Holdings Group Share Option
Plan. The options are normally exercisable
between the third and 10th anniversaries of the
award at a price of £8.283 per share, the market
value of the ordinary shares on the date of
award.
12. Options over 340,160 ordinary shares were
awarded at nil consideration on 27 August 2004
under the HSBC Holdings Group Share Option
Plan. The options are normally exercisable
between the third and 10th anniversaries of the
award at a price of £8.65 per share, the market
value of the ordinary shares on the date of
award.
HSBC Finance Corporation
13. 1,590,319 ordinary shares were issued at
US$9.60 in connection with the early settlement
of HSBC Finance Corporation 8.875%
Adjustable Conversion-Rate Equity Security
Units.
14. 293,254 ordinary shares were issued at prices
ranging from US$14.11 to US$17.28 in
connection with the exercise of options under
HSBC Finance Corporation share plans that
have been converted into options over HSBC
Holdings ordinary shares.
Authority to allot shares
15. At the Annual General Meeting in 2004
shareholders renewed the authority for the
Directors to allot new shares. The authority was
to allot up to 2,199,800,000 ordinary shares,
10,000,000 non-cumulative preference shares of
£0.01 each, 10,000,000 non-cumulative
preference shares of US$0.01 each and
10,000,000 non-cumulative preference shares of
€0.01 each.
Other than as described in paragraphs 1. to 14.
above, the Directors did not allot any shares
during 2004.
Authority to repurchase shares
16. At the Annual General Meeting in 2004
shareholders renewed the authority for the
Company to make market repurchases of up to
1,099,900,000 ordinary shares. The Directors
have not exercised this authority.
Employee share option plans
In order to align the interests of staff with those of
shareholders, share options are awarded to
employees under all-employee share plans and
discretionary share incentive plans. The following
are particulars of outstanding employee share
options, including those held by employees working
under employment contracts that are regarded as
“continuous contracts” for the purposes of the Hong
Kong Employment Ordinance. The options were