RWS Annual Report 2022 web - Flipbook - Page 147
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 fifth anniversary of the grant date, participants are
not permitted to sell the ordinary shares until the fifth anniversary of grant date. All options will lapse on the tenth
anniversary of the grant date and are subject to defined 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.
Lapsed
during
the year
Number
30 September
2022
Number
Exercise
price
pence
Exercise
period
-
-
216,556
601.0
10 May 2024 - 10 May 2029
-
(279,389)
593,403
615.0
22 Jan 2025 - 22 Jan 2030
-
34,192
613.0
9 June 2026 – 9 June 2036
(279,389)
844,151
Date of grant
1 October
2021
Number
Granted
during
the year
Number
Exercised
during
the year
Number
10 May 2019
216,556
-
22 January 2020
872,792
-
34,192
-
-
1,123,540
-
-
9 June 2021
Total
The fair value of share options granted under the SAYE and LTIP schemes during the year were estimated using the
Black-Scholes option pricing model. Equity settled options under the SAYE scheme and ESOP 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 reflects 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
Weighted average share price at grant (pence)
470.0
500.0
Weighted average exercise price (pence)
504.0
1.0
1.0
3.0
4.3
4.3
37.00
32.14
32.14
1.50
1.50
1.50
Expected life of option (years)
Volatility (%)
Dividend yield (%)
Risk free interest rate (%)
Option value (pence)
500.0
0.05
0.87
0.87
113.10
129.0
308.0
2022
£m
2021
£m
94.8
89.6
6.4
2.9
101.2
92.5
23. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
The fair value of cash and cash equivalents is £101.2m (2021: £92.5m). Restricted cash at 30 September 2022 was £Nil
(2021: £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 insignificant risk of changes in value.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2022
147
