Share-Based Plans

12 Months Ended

Dec. 31, 2011

Share-Based Plans [Abstract]

Share-Based Plans

22. Share-Based Plans

Employee Stock Purchase Plans  The HSBC Holdings Savings-Related Share Option Plan (“HSBC Sharesave Plan”) allows eligible employees to enter into savings contracts of one, three or five year lengths, with the ability to decide at the end of the contract term to either use their accumulated savings to purchase HSBC ordinary shares at a discounted option price or have the savings plus interest repaid in cash. Employees can currently save up to $400 per month over all their HSBC Sharesave Plans savings contracts.

The following table presents information for the HSBC Sharesave Plan.

At December 31,	2011			2010			2009
	(dollars are in millions)
Sharesave (5 year vesting period):
Total options granted		59,000			67,000			943,000
Fair value per option granted	$	2.22		$	2.76		$	2.08
Total compensation expense recognized	$	1		$	1		$	1
Significant assumptions used to calculate fair value:
Risk free interest rate		2.17	%		2.63	%		2.10	%
Expected life (years)		5			5			5
Expected volatility		25	%		30	%		30	%
Sharesave (3 year vesting period):
Total options granted		209,000			268,000			1,447,000
Fair value per option granted	$	2.08		$	2.57		$	2.21
Total compensation expense recognized	$	1		$	1		$	1
Significant assumptions used to calculate fair value:
Risk free interest rate		1.19	%		1.65	%		1.47	%
Expected life (years)		3			3			3
Expected volatility		25	%		30	%		35	%
Sharesave (1 year vesting period):
Total options granted		173,000			168,000			334,000
Fair value per option granted	$	1.62		$	2.00		$	2.06
Total compensation expense recognized	$	-		$	1		$	1
Significant assumptions used to calculate fair value:
Risk free interest rate		.25	%		.47	%		.52	%
Expected life (years)		1			1			1
Expected volatility		25	%		30	%		50	%

Restricted Share Plans  Key employees have been provided awards in the form of restricted share rights (“RSRs”), restricted shares (“RSs”) and restricted share units (“RSUs”) under the HSBC Group Share Plan. These shares have been granted subject to either time-based vesting or performance based-vesting, typically over three to five years. Currently, share-based awards granted to U.S. employees are granted in the form of RSUs. Annual awards to employees in 2011 and 2010 are subject to three-year time-based graded vesting. Also during 2011, we made a one-time grant of performance-based awards that are subject to performance-based vesting periods ranging from 12 to 30 months. Annual awards to employees in 2009 vest after three years. We also issue a small number of off-cycle grants each year, primarily for reasons related to recruitment of new employees. Compensation expense for these restricted share plans totaled $54 million in 2011, $40 million in 2010 and $51 million in 2009.