HSBC 2008 Annual Report Download - page 307

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may elect to have the savings, plus (where
applicable) any interest or bonus, repaid in cash.
Options granted over a one-year period will be
exercisable within three months following the first
anniversary of the commencement of the savings
contract. Options granted over three or five-year
periods will be exercisable within six months
following the third or fifth anniversary of the
commencement of the relevant savings contract. In
the case of redundancy, retirement on grounds of
injury or ill health, retirement at or after normal
retirement age, the transfer of the employing
business to another party, or a change of control of
the employing company, options may be exercised
before completion of the relevant savings contract.
Under the HSBC Holdings Savings-Related
Share Option Plan and the HSBC Holdings Savings-
Related Share Option Plan: International the option
exercise price is determined by reference to the
average market value of the ordinary shares on the
five business days immediately preceding the
invitation date, then applying a discount of
20 per cent (except for the one-year options awarded
under the US sub-plan where a 15 per cent discount
is applied). The exercise period of the options
awarded under all-employee share plans may be
advanced to an earlier date in certain circumstances,
for example on retirement, and may be extended in
certain circumstances, for example on the death of a
participant, the executors may exercise the option up
to six months beyond the normal exercise period.
The closing price per HSBC Holdings ordinary share
on 29 April 2008, the day before options were
awarded in 2008 under the HSBC Holdings
Savings-Related Share Option Plan and the HSBC
Holdings Savings-Related Share Option Plan:
International, was £8.71. The all-employee share
option plans will terminate on 27 May 2015 unless
the Directors resolve to terminate the plans at an
earlier date.
To encourage greater participation in the HSBC
Holdings Savings-Related Share Option Plan:
International, two amendments were approved at the
2005 Annual General Meeting. The first was the
introduction of the facility to save and have option
prices expressed in US dollars, Hong Kong dollars
and euros as well as in pounds sterling. Where
applicable, the US dollars, Hong Kong dollars and
euro exercise prices are converted from the sterling
exercise price at the applicable exchange rate on the
working day preceding the relevant invitation date.
The second amendment was to provide the choice of
options over one year in addition to three and five
year terms.
HSBC Holdings Savings-Related Share Option Plan
HSBC Holdings ordinary shares of US$0.50
Date of
award
Exercise
price (£)
Exercisable
from
Exercisable
until
Options at
1 January
2008
Options
awarded
during year
Options
exercised
during year1
Options
lapsed
during year
Options at
31 December
2008
2 May 2002 6.3224 1 Aug 2007 31 Jan 2008 86,920 – 63,438 23,482 –
23 Apr 2003 5.3496 1 Aug 2008 31 Jan 2009 10,402,796 – 9,900,129 131,349 371,318
21 Apr 2004 6.4720 1 Aug 2007 31 Jan 2008 132,967 – 90,953 42,014 –
21 Apr 2004 6.4720 1 Aug 2009 31 Jan 2010 4,941,092 – 65,740 227,458 4,647,894
24 May 2005 6.6792 1 Aug 2008 31 Jan 2009 3,522,870 – 3,190,140 132,372 200,358
24 May 2005 6.6792 1 Aug 2010 31 Jan 2011 4,938,431 – 49,280 338,748 4,550,403
26 Apr 2006 7.6736 1 Aug 2009 31 Jan 2010 3,817,398 – 30,546 627,424 3,159,428
26 Apr 2006 7.6736 1 Aug 2011 31 Jan 2012 3,062,172 – 14,045 411,234 2,636,893
25 Apr 2007 7.0872 1 Aug 2010 31 Jan 2011 5,767,372 – 20,411 1,041,305 4,705,656
25 Apr 2007 7.0872 1 Aug 2012 31 Jan 2013 4,075,471 – 6,641 513,887 3,554,943
30 Apr 2008 6.8160 1 Aug 2011 31 Jan 2012 – 7,169,605 843 435,469 6,733,293
30 Apr 2008 6.8160 1 Aug 2013 31 Jan 2014 – 6,142,429 277 194,292 5,947,860
1 The weighted average closing price of the shares immediately before the dates on which options were exercised was £8.38.