HSBC 2004 Annual Report Download - page 293

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Sinopia options effectively outstanding over HSBC Holdings ordinary shares under this arrangement are as follows:
Number of Sinopia
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2004 .............................................. 125,500 2005 €18.66 – €18.80
31 December 2003 ............................................... 221,500 2004 to 2005 €8.61 – €21.85
31 December 2002 ............................................... 315,900 2003 to 2005 €8.61 – €21.85
Since 2003, on exercise of options over shares of HSBC Private Bank France, the HSBC Private Bank France shares
are exchangeable for HSBC Holdings ordinary shares in the ratio of 1.83 HSBC Holdings shares for each HSBC
Private Bank France share. During 2004, 101,750 HSBC Private Bank France shares were issued following the
exercise of employee share options and exchanged for 184,093 HSBC Holdings ordinary shares. During 2004,
options over 126,000 (2003: 293,500) HSBC Private Bank France shares lapsed. At 31 December 2004, 1,125 HSBC
Private Bank France shares were in issue and will be exchanged for HSBC Holdings ordinary shares on the fourth
anniversary of the awards of the options. At 31 December 2004, The CCF Employee Benefit Trust 2001 held
2,294,066 (2003: 1,900,000) 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 are as follows:
Number of HSBC
Private Bank France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2004 ............................................... 1,132,060 2005 to 2012 €10.84 – €22.22
31 December 2003 ............................................... 1,359,810 2004 to 2012 €10.84 – €22.22
On the acquisition of Banque Hervet in 2001, Banque Hervet shares were held in a Plan d’ Epargne Entreprise on
behalf of Banque Hervet employees to vest and be released to employees over a 5 year period. It was agreed to
exchange these Banque Hervet shares, on vesting, for HSBC Holdings ordinary shares in the ratio of 3.46 HSBC
Holdings ordinary shares for each Banque Hervet share. During 2004, 44,870 (2003: 8,303; 2002: nil) Banque Hervet
shares were released in connection with the vesting of interests in the Plan d’ Epargne Entreprise and exchanged for
155,219 (2003: 28,729; 2002: nil) HSBC Holdings ordinary shares. At 31 December 2004, The CCF Employee
Benefit Trust 2001 held 612,752 (2003: 767,971; 2002: 796,700) HSBC Holdings ordinary shares which may be
exchanged for Banque Hervet shares from the vesting of interests.
Banque Hervet shares to be exchanged for HSBC Holdings ordinary shares under this arrangement are as follows:
Number of Banque
Hervet shares
exchangeable for
HSBC Holdings
ordinary shares Period of vesting
31 December 2004 ............................................................................................... 177,086 2005 – 2006
31 December 2003 ............................................................................................... 221,956 2004 – 2006
31 December 2002 ................................................................................................ 230,259 2003 – 2006
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 HSBC Finance Corporation (2.675 HSBC Holdings ordinary
shares for each HSBC Finance Corporation common share) and the exercise prices per share adjusted accordingly.
During 2004, options over 6,073,291 (2003: 4,755,951) HSBC Holdings ordinary shares were exercised and
5,771,110 (2003: 4,755,951) HSBC Holdings ordinary shares were delivered from The HSBC (Household)
Employee Benefit Trust 2003 to satisfy the exercise of these options. During 2004, options over 415,430 (2003:
1,495,103) HSBC Holdings ordinary shares lapsed. At 31 December 2004, The HSBC (Household) Employee
Benefit Trust 2003 held 5,645,439 (2003: 12,444,049) HSBC Holdings ordinary shares and 2,200,000 (2003: nil)