HSBC 2004 Annual Report Download - page 231

Audited Information
229
Accrued
annual
pension at
31 December
2004
Increase in
accrued
pension
during
2004
Increase in
accrued
pension during
2004,
excluding
any increase
for inflation
Transfer
value
of accrued
pension at
1 January
2004
Transfer
value
of accrued
pension at
31 December
2004
Increase of
transfer value
of accrued
pension (less
personal
contributions)
in 2004
Transfer value
(less personal
contributions)
at
31 December
2004 relating
to increase
in accrued
pensions
during 2004,
excluding any
increase for
inflation
£000 £000 £000 £0001£0001£0001£0001
Sir John Bond2 .... 481 57 44 7,924 9,230 1,306 840
C F W de Croisset3193 128 128 860 2,623 1,763 1,747
W R P Dalton4 ..... 13 3 (3) 4,258 4,562 304 226
D G Eldon5 .......... 278 27 18 5,045 5,275 32862156
M F Geoghegan7.. 185 34 29 3,652 4,042 62083768
S K Green ........... 288 110 105 2,367 4,401 2,034 1,599
A W Jebson ......... 182 41 37 1,769 2,612 843 529
1The transfer value represents a liability of HSBC’s pension funds and not a sum paid or due to the individual; it cannot therefore
meaningfully be added to annual remuneration.
2On attaining age 60, Sir John Bond has been able, under the terms of the scheme, to retire at any time with an immediate pension equal
to his accrued pension which, at 31 December 2004, is shown above.
3Retired as a Director on 27 February 2004.
4W R P Dalton retired from HSBC with effect from 31 May 2004 with a gross pension of £277,000 per annum. Mr Dalton elected to
commute part of this pension for a lump sum payment of £4,256,000, leaving a residual pension of £13,000 per annum. As a result the
pension in payment at 31 December 2004 is lower than the accrued pension at 1 January 2004. The increase in accrued pension during
2004 reflects the gross pension before commutation. The transfer value of benefits at 31 December 2004 reflects both the pension in
payment and the commutation lump sum, increased with interest.
5On attaining age 53, D G Eldon has been able, under the terms of the scheme, to retire at any time with an immediate pension equal to
his accrued pension which, at 31 December 2004, is shown above.
6D G Eldon made personal contributions towards his pension of £15,445 in respect of 2004.
7Appointed as a Director on 1 March 2004.
8M F Geoghegan made personal contributions towards his pension of £14,182 in respect of 2004.
In addition to the unfunded pension payments as
from 1 March 2004 to C F W de Croisset referred to
above, the following unfunded pension payments, in
respect of which provision has been made, were
made during 2004 to four former Directors of HSBC
Holdings:
2004
£
2003
£
B H Asher ....................... 85,443 83,277
R Delbridge ...................... 122,891 119,777
Sir Brian Pearse ................ 51,246 49,947
Sir William Purves ........... 90,453 88,158
350,033 341,159
The payments in respect of R Delbridge and Sir
Brian Pearse were made by HSBC Bank plc as
former Directors of the bank.
Share options
At 31 December 2004, the undernamed Directors
held options to acquire the number of HSBC
Holdings ordinary shares set against their respective
names. The options were awarded for nil
consideration at exercise prices equivalent to the
market value at the date of award, except that
options awarded under the HSBC Holdings savings-
related share option plans before 2001 are
exercisable at a 15 per cent discount to the market
value at the date of award and those awarded since
2001 at a 20 per cent discount. Under the Securities
and Futures Ordinance of Hong Kong the options are
categorised as unlisted physically settled equity
derivatives.
Except as otherwise indicated, no options were
exercised or lapsed during the year and there are no
remaining performance criteria conditional upon
which the outstanding options are exercisable. The
market value of the ordinary shares at 31 December
2004 was £8.79. The highest and lowest market
values during the year were £9.535 and £7.84.
Market value is the mid-market price derived from
the London Stock Exchange Daily Official List on
the relevant date.