HSBC 2005 Annual Report Download - page 322

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
320
Number of
HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2005 ............................................... 341,281,540 2006 to 2015 £2.1727 – £9.642
31 December 2004 ................................................ 374,369,127 2005 to 2014 £2.1727 – £9.642
31 December 2003 ................................................ 347,007,843 2004 to 2013 £2.1727 – £9.642
Following the acquisition of HSBC France in 2000, outstanding employee share options over HSBC France shares
vested. On exercise of the options, the HSBC France shares are exchangeable for HSBC Holdings ordinary shares in
the same ratio as for the acquisition of HSBC France (13 HSBC Holdings ordinary shares for each HSBC France
share).
During 2005, 435,784 (2004: 451,080) HSBC France shares were issued following the exercise of employee share
options and exchanged for 5,665,192 HSBC Holdings ordinary shares such shares being delivered from The HSBC
Holdings Employee Benefit Trust 2001 (No. 1) (2004: 5,864,040). During 2005, no options over HSBC France
shares lapsed (2004: 800). During 2005, 1,500 (2004: 9,500) HSBC France shares previously issued following the
exercise of employee share options were exchanged for 19,500 (2004: 123,500) HSBC Holdings ordinary shares,
such shares being delivered from The HSBC Holdings Employee Benefit Trust 2001 (No. 1). There were 1,732,996
HSBC France employee share options exchangeable for HSBC Holdings ordinary shares outstanding at 31 December
2005 (2004: 2,162,780). At 31 December 2005, The HSBC Holdings Employee Benefit Trust 2001 (No. 1) held
21,102,823 (2004: 26,787,515) HSBC Holdings ordinary shares which may be exchanged for HSBC France shares
arising from the exercise of options.
HSBC France options effectively outstanding over HSBC Holdings ordinary shares under this arrangement are as
follows:
Number of
HSBC France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2005 ............................................... 1,732,996 2006 to 2010 €35.52 – €142.50
31 December 2004 ................................................ 2,170,280 2005 to 2010 €32.78 – €142.50
31 December 2003 ................................................ 2,625,660 2004 to 2010 €32.78 – €142.50
There also exist outstanding options over the shares of various HSBC France subsidiaries which are exchangeable for
HSBC Holdings ordinary shares, the details of which are set out in the Directors’ Report on pages 189 to 214 and
summarised below. On exercise of options over shares of Sinopia Asset Management (‘Sinopia’) the Sinopia shares
were exchangeable for HSBC Holdings ordinary shares in the ratio of 2.143 HSBC Holdings ordinary shares for each
Sinopia share. During 2005, 125,500 (2004: 94,000) Sinopia shares were issued following the exercise of employee
share options and exchanged for 268,944 (2004: 201,439) HSBC Holdings ordinary shares, such shares being
delivered from The CCF Employee Benefit Trust 2001 (Sinopia).
Sinopia options that were effectively outstanding over HSBC Holdings ordinary shares under this arrangement were
as follows:
Number of Sinopia
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2005 ............................................... −−−
31 December 2004 ................................................ 125,500 2005 €18.66 – €18.80
31 December 2003 ................................................ 221,500 2004 to 2005 €8.61 – €21.85
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 2005, 473,400 HSBC Private Bank France shares were issued following the exercise of
employee share options and exchanged for 841,291 HSBC Holdings ordinary shares, such shares being delivered
from The CCF Employee Benefit Trust 2001 (Private Banking France). During 2005, options over 59,875 (2004:
126,000) HSBC Private Bank shares lapsed. During 2005, 1,150 HSBC Private Bank France shares previously issued
following the exercise of employee share options were exchanged for 2,104 HSBC Holdings ordinary shares. At 31