Share-Based Plans

12 Months Ended

Dec. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Stock Purchase Plans The HSBC Holdings Savings-Related Share Option Plan ("HSBC Sharesave Plan") allowed 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 any interest repaid in cash. Compensation expense related to grants under the HSBC Sharesave Plan was less than $3 million in 2013, 2012 and 2011, respectively. The HSBC Shareshave Plan was not offered to employees during the 2013 enrollment period and therefore, there were no options granted under the plan during the year.

The following table presents information for the HSBC Sharesave Plan.



At December 31,	2012			2011
	(dollars are in millions)
Sharesave (5 year vesting period):
Total options granted	107,000			59,000
Fair value per option granted	$	1.61		$	2.22
Significant assumptions used to calculate fair value:
Risk free interest rate	0.92		%	2.17		%
Expected life (years)	5			5
Expected volatility	25		%	25		%
Sharesave (3 year vesting period):
Total options granted	430,000			209,000
Fair value per option granted	$	1.63		$	2.08
Significant assumptions used to calculate fair value:
Risk free interest rate	0.45		%	1.19		%
Expected life (years)	3			3
Expected volatility	25		%	25		%
Sharesave (1 year vesting period):
Total options granted	153,000			173,000
Fair value per option granted	$	1.35		$	1.62
Significant assumptions used to calculate fair value:
Risk free interest rate	.23		%	.25		%
Expected life (years)	1			1
Expected volatility	25		%	25		%

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 2013, 2012 and 2011 are generally 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. 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 $34 million in 2013, $34 million in 2012 and $54 million in 2011. As of December 31, 2013 , future compensation cost related to grants which have not yet fully vested is approximately $14 million. This amount is expected to be recognized over a weighted-average period of less than one year.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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