HSBC 2007 Annual Report Download - page 441

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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 2007, 61,880 (2006: 194,804) HSBC Private Bank France shares were issued following
the exercise of employee share options and exchanged for 113,234 (2006: 356,472) HSBC Holdings ordinary shares,
such shares being delivered from The CCF Employee Benefit Trust 2001 (Private Banking France). During 2007, no
options over HSBC Private Bank France shares lapsed (2006: nil). During 2007, 8,819 (2006: 6,000) HSBC Private
Bank France shares previously issued following the exercise of employee share options were exchanged for 16,137
(2006: 10,980) HSBC Holdings ordinary shares. At 31 December 2007, no (2006: 8,819) HSBC Private Bank France
shares previously issued following the exercise of employees’ share options were exchanged for HSBC Holdings
ordinary shares. There were 340,976 HSBC Private Bank France employee share options exchangeable for HSBC
Holdings ordinary shares outstanding at 31 December 2007 (2006: 402,856). At 31 December 2007, The CCF
Employee Benefit Trust 2001 (Private Banking France) held 955,952 (2006: 1,085,323) 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 (including shares issued but not exchanged) effectively outstanding over HSBC
Holdings ordinary shares under this arrangement were as follows:
Number of HSBC
Private Bank France
shares exchangeable
for HSBC Holdings
ordinary shares Period of exercise Exercise price
31 December 2007 ............................................... 340,976 2008 to 2012 €10.84 – 22.22
31 December 2006 ................................................ 411,675 2007 to 2012 €10.84 – 22.22
31 December 2005 ................................................ 612,479 2006 to 2012 €10.84 – 22.22
Banque Hervet plan
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 2007, no (2006: 163,369) Banque Hervet shares were
released in connection with the vesting of interests in the Plan d’Epargne Entreprise and exchanged for any (2006:
565,151) HSBC Holdings ordinary shares, such shares being delivered from The CCF Employee Benefit Trust 2001
(Banque Hervet). At 31 December 2007, The CCF Employee Benefit Trust 2001 (Banque Hervet) held no (2006: nil)
HSBC Holdings ordinary shares.
Banque Hervet shares to be exchanged for HSBC Holdings ordinary shares under this arrangement were as follows:
Number of Banque
Hervet shares
exchangeable for
HSBC Holdings
ordinary shares Period of vesting
31 December 2007 ............................................................................................... – –
31 December 2006 ................................................................................................ – –
31 December 2005 ................................................................................................ 169,416 2006
HSBC Finance and subsidiary company plans
Following the acquisition of HSBC Finance in 2003, all outstanding options and equity-based awards over HSBC
Finance common shares were converted into rights to receive HSBC Holdings ordinary shares in the same ratio as the
share exchange offer for HSBC Finance (2.675 HSBC Holdings ordinary shares for each HSBC Finance common
share) and the exercise prices per share adjusted accordingly. During 2007, options over 5,370,104 (2006:
10,484,937) HSBC Holdings ordinary shares were exercised and 4,602,172 (2006: 9,781,228) HSBC Holdings
ordinary shares delivered from The HSBC (Household) Employee Benefit Trust 2003 to satisfy the exercise of
these options. During 2007, options over 399,823 (2006: 300,555) HSBC Holdings ordinary shares lapsed. At
31 December 2007, The HSBC (Household) Employee Benefit Trust 2003 held a total of 1,856,417 (2006:
3,226,216) HSBC Holdings ordinary shares and 196,455 (2006: 198,665) ADSs, each of which represents five HSBC
Holdings ordinary shares, which may be used to satisfy the exercise of these options and equity-based awards under
the HSBC Finance share plans.