RWS Annual Report 2022 web - Flipbook - Page 145
22. SHARE-BASED PAYMENTS
Share based payments
The Group and Parent Company provide benefits to certain employees (including certain Executive Directors), in the
form of share-based payment transactions whereby employees render services in exchange for either share options
(equity-settled) or cash options (cash-settled).
The equity-settled share-based transactions are measured at the fair value of the share option at the grant date. The
fair value determined at the grant date of the share options is expensed on a straight-line basis over the vesting period,
based on the Group’s estimate of the number of share options that will vest.
At each balance sheet date, the Group revises its estimate of the number of options expected to vest as a result of the
effect on non-market-based vesting conditions. The impact of the revision of the original estimates, if any, is recognised
in profit or loss in the consolidated statement of comprehensive income, such that the cumulative expense reflects the
revised estimate with a corresponding adjustment to equity reserves. For cash-settled share-based transactions, an
expense is recognised, with a corresponding increase in liabilities, over the period during which employees become
entitled to payment. The liability is remeasured at each reporting date and at settlement date based on the fair value of
the cash options. Any changes in the liability are recognised in profit or loss.
The Group incurred a charge of £3.2m relating to share-based payments in the year ended 30 September 2022, as follows;
2022
Scheme
Save As You Earn (SAYE) scheme
2021
Equity-settled
£m
Cash-settled
£m
Total
£m
Equity-settled
£m
Cash-settled
£m
Total
£m
0.1
-
0.1
0.1
-
0.1
LTIPs
1.2
-
1.2
0.3
-
0.3
Executive Share Option Plan ('ESOP')
0.2
-
0.2
0.5
-
0.5
Deferred consideration
1.7
-
1.7
0.5
-
0.5
3.2
-
3.2
1.4
-
1.4
LTIPs
2013 Share
option plan
Number
RWS Save As You
Earn scheme
Number
Executive share
option plan
Number
SDL Save
as You Earn
scheme
Number
Weighted
average
exercise price
(£)
-
152,635
254,869
2,677,049
-
5.750
1,850,118
-
253,707
34,192
-
0.667
Summary of movements in awards
Balance at 1 October 2020
Granted during the year
On acquisition of SDL
Lapsed during the year
Exercised during the year
Balance at 30 September 2021
Exercisable at 30 September 2021
-
-
-
-
276,258
2.821
(418,662)
-
(31,968)
(1,587,701)
(5,643)
4.823
-
(152,635)
-
-
(154,315)
1.940
1,431,456
-
476,608
1,123,540
116,300
3.123
-
-
-
-
35,218
Granted during the year
1,378,864
-
211,288
-
-
Lapsed during the year
(428,949)
-
(128,067)
(279,389)
(9,453)
2.810
-
-
(5,657)
-
(61,980)
3.014
2,381,371
-
554,172
844,151
44,867
2.088
-
-
123,650
-
44,867
Exercised during the year
Balance at 30 September 2022
Exercisable at 30 September 2022
0.678
The weighted average share price at the date of exercise of shares exercised during the year was 519.6 pence per share
(2021: 631.6 pence). The weighted average remaining contractual life of outstanding options at the end of the year was
10.5 years (2021: 9.7 years). The aggregate fair value of options granted in the year was £3.3m (2021: £5.1m).
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2022
145
