HSBC 2004 Annual Report Download - page 200

HSBC HOLDINGS PLC
Report of the Directors (continued)
198
HSBC Finance Corporation and subsidiary
company plans
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 the
acquisition of HSBC Finance Corporation (2.675
HSBC Holdings ordinary shares for each HSBC
Finance Corporation common share) and the
exercise prices per share were adjusted accordingly.
No further options will be granted under any of these
plans.
All outstanding options and other equity-based
awards over HSBC Finance Corporation common
shares granted before 14 November 2002, being the
date the transaction was announced, vested on
completion of the acquisition. Options and equity-
based awards granted on or after 14 November 2002
will be exercisable on their original terms, save that
they have been adjusted to reflect the exchange ratio.
At 31 December 2004, the HSBC (Household)
Employee Benefit Trust 2003 held 5,645,439 HSBC
Holdings ordinary shares and 2,200,000 American
Depositary Shares (‘ADSs’ ), each of which
represents five HSBC Holdings ordinary shares,
which may be used to satisfy the exercise of
employee share options.
HSBC Finance Corporation
1984 Long-Term Executive Incentive Compensation Plan
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (US$)
Exercisable
from
Exercisable
until
Options at
1 January
2004
Options
exercised
during year1
Options
lapsed
during year
Options at
31 December
2004
1 Feb 1994 4.16 1 Feb 1995 1 Feb 2004 135,627 135,627 – –
7 Feb 1995 5.09 7 Feb 1996 7 Feb 2005 1,532,234 1,384,092 – 148,142
10 May 1995 5.91 10 May 1996 10 May 2005 48,150 48,150 – –
17 Jul 1995 6.42 17 Jul 1996 17 Jul 2005 40,125 40,125 – –
13 Nov 1995 7.43 13 Nov 1996 13 Nov 2005 2,056,007 1,772,876 – 283,131
1The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.63.
HSBC Finance Corporation
1996 Long-Term Executive Incentive Compensation Plan
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (US$)
Exercisable
from
Exercisable
until
Options at
1 January
2004
Options
exercised
during year1
Options
lapsed
during year
Options at
31 December
2004
11 Nov 1996 11.43 11 Nov 1997 11 Nov 2006 2,587,394 1,580,925 – 1,006,469
14 May 1997 11.29 14 May 1998 14 May 2007 200,630 – – 200,630
10 Nov 1997 14.60 10 Nov 1998 10 Nov 2007 4,224,670 208,650 – 4,016,020
15 Jun 1998 17.08 15 Jun 1999 15 Jun 2008 802,500 – – 802,500
1 Jul 1998 19.21 1 Jul 1999 1 Jul 2008 80,250 – – 80,250
9 Nov 1998 13.71 9 Nov 1999 9 Nov 2008 4,928,354 232,725 – 4,695,629
17 May 1999 16.99 17 May 2000 17 May 2009 334,375 – – 334,375
3 Jun 1999 16.32 3 Jun 2000 3 Jun 2009 200,625 – – 200,625
31 Aug 1999 13.96 31 Aug 2000 31 Aug 2009 345,077 – – 345,077
8 Nov 1999 16.96 8 Nov 2000 8 Nov 2009 4,869,841 – – 4,869,841
30 Jun 2000 15.70 30 Jun 2001 30 Jun 2010 26,846 – – 26,846
8 Feb 2000 13.26 8 Feb 2001 8 Feb 2010 66,875 – – 66,875
13 Nov 2000 18.40 13 Nov 2001 13 Nov 2010 6,379,208 – – 6,379,208
12 Nov 2001 21.37 12 Nov 2002 12 Nov 2011 7,571,322 – – 7,571,322
20 Nov 2002 10.66 20 Nov 2003220 Nov 2012 7,315,727 174,139 30,094 7,111,494
1The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.85.
225 per cent of the original award is exercisable on each of the first, second, third and fourth anniversaries of the date of award. May be
advanced to an earlier date in certain circumstances, e.g. retirement.