HSBC 2014 Annual Report Download - page 133

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HSBC BANK PLC
Notes on the Financial Statements (continued)
131
HSBC Share Option Plans
Main plans
Policy
Purpose
Savings-related
share option
plans
• Two plans: the UK plan and the International Plan. The last grant
of options under the International Plan was in 2012.
•
Eligible employees save up to £500 per month (or for options
granted prior to 2013, the equivalent in euros), with the option to
use the savings to acquire shares.
•
Exercisable within six months following either the third or fifth
anniversaries of the commencement of a three-year or five-year
contract, respectively, (or for options granted prior to 2013, three
months following the first anniversary of the commencement of a
one-year savings contract).
•
The exercise price is set at a 20% (2013: 20%) discount to the
market value immediately preceding the date of invitation (except
for the one-year options granted under the US sub-plan prior to
2013 where a 15% discount was applied).
• To align the interests of all employees with
the creation of shareholder value.
Calculation of fair values
The fair values of share options are calculated using a Black-Scholes model. The fair value of a share award is based on the
share price at the date of the grant.
Movement on HSBC share option plans
Savings-related share
option plans
HSBC Holdings Group
share option plan
Number
(000s)
WAEP1
£
Number
(000s)
WAEP1
£
2014
Outstanding at 1 January
53,305
4.21
25,969
7.23
Granted during the year
26,396
5.19
–
–
Exercised during the year
(24,416)
3.51
–
–
Transferred during the year
(337)
4.42
(359)
7.26
Expired during the year
(3,629)
4.90
(20,773)
7.22
Outstanding at 31 December
51,319
4.98
4,837
7.29
Weighted average remaining contractual life (years)
2.44
Savings-related share
option plans
HSBC Holdings Group
share option plan
Number
(000s)
WAEP1
£
Number
(000s)
WAEP1
£
2013
Outstanding at 1 January
56,119
4.22
40,257
6.87
Granted during the year
8,205
5.47
–
Exercised during the year
(5,668)
4.68
(10,026)
6.18
Transferred during the year
(164)
4.17
(123)
7.17
Expired during the year
(5,187)
4.61
(4,139)
6.15
Outstanding at 31 December
53,305
4.21
25,969
7.23
Weighted average remaining contractual life (years)
1.52
1 Weighted average exercise price