RWS AR 23 Final Single pages - Flipbook - Page 151
Executive share option plan (“ESOP”)
On 13 May 2019, the Group announced a new Share Option Plan for executives and selected senior management.
These options will normally vest on the third anniversary of the grant date subject to the rules of the plan, continued
employment and achievement of performance conditions. The performance conditions applicable to the options are
based on the Group achieving EPS targets, each option grant being split into three tranches, each subject to an EPS
target for a reporting year, set annually in advance by RWS Remuneration Committee.
Vested options are exercisable, however if exercised before the 昀椀fth anniversary of the grant date, participants are
not permitted to sell the ordinary shares until the 昀椀fth anniversary of grant date. All options will lapse on the tenth
anniversary of the grant date and are subject to de昀椀ned malus and claw-back provisions.
These option grants are normally settled on exercise via the issue of new shares but some are cash settled. Equity and
cash settled shares follow the same vesting conditions.
Date of grant
1 October
2022
Number
Granted
during
the year
Number
Exercised
during
the year
Number
10 May 2019
216,556
-
22 January 2020
593,403
-
34,192
-
-
844,151
-
-
9 June 2021
Total
Lapsed
during
the year
Number
30 September
2023
Number
Exercise
price
pence
Exercise
period
-
-
216,556
601.0
10 May 2024 - 10 May 2029
-
(54,743)
538,660
615.0
22 Jan 2025 - 22 Jan 2030
(11,397)
22,795
613.0
9 Jun 2026 - 9 Jun 2031
(66,140)
778,011
The fair value of share options granted during the year under the SAYE scheme and LTIP award relating to the Non Market
related performance condition were estimated using the Black-Scholes option pricing model. The share options granted
under the LTIP award relating to the market performance condition (TSR performance condition) were valued using the
Monte Carlo model. Equity settled options under the SAYE scheme and the LTIP scheme were valued at grant date.
The following table lists the assumptions applied to the options granted. Equity settled option grants are settled on
exercise via new shares. The expected volatility re昀氀ects the assumption historical volatility over a period similar to the
life of the options is indicative of future trends, which may not necessarily be the actual outcome.
SAYE
Scheme
LTIP -Market LTIP - Non Market
No Holding
No Holding
condition
condition
LTIP - Market LTIP - Non Market
Holding
Holding
Condition
Condition
Weighted average share price at grant (pence)
374.0
388.0
388.0
388.0
388.0
Weighted average exercise price (pence)
361.0
1.0
1.0
1.0
1.0
3
3
3
3
3
44%
41%
41%
41%
41%
Expected life of option (years)
Volatility (%)
Dividend yield (%)
Risk free interest rate (%)
Fair value (pence)
nil
nil
nil
nil
nil
3.7%
3.1%
3.1%
3.1%
3.1%
130.7
270.0
388.0
223.0
320.0
2023
£m
2022
£m
68.5
94.8
7.7
6.4
76.2
101.2
23. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
The fair value of cash and cash equivalents is £76.2m (2022: £101.2m). Restricted cash at 30 September 2023 was £Nil
(2022: £Nil).
Short-term deposits have an original maturity of three months or less depending on the immediate cash requirements
of the Group, and earn interest at the respective short-term deposit rates. Management consider short term deposits to
be subject to an insigni昀椀cant risk of changes in value.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS Holdings plc — Annual Report 2023
151
