23.1.2. Fair value of share options
| 2023 plan, 2023 tranche |
2020 plan, 2022 tranche |
2020 plan, 2021 tranche |
2020 plan, 2020 tranche |
|
|---|---|---|---|---|
| Date of granting options | 11 September 2023 | 13 October 2022 | 19 October 2021 | 16 September 2020 |
| Number of options in a tranche | 97,000 | 90,000 | 90,000 | 88,000 |
| Expected dividends | 273.92 PLN | 268.72 PLN | 252.16 PLN | 199.67 PLN |
| Assumed volatility index for the underlying instrument | 20% | 19% | 17% | 16% |
| Historical volatility index (%) | 32% | 30% | 28% | 27% |
| Risk-free interest rate (%) | 5.4% | 7.8% | 2.4% | 1% |
| Expected period of options validity (in months) | 72 months | 72 months | 72 months | 72 months |
| Remaining vesting period | 33 months | 21 months | 9 months | Ended |
| Weighted average share price (PLN) | 532.20** | 358.10** | 358.10** | 361.50 |
| Plan fair values at launch date in PLN ‘000 | 22,780 | 9,878 | 20,089 | 7,556 |
| Parameter A accomplishment | YES | YES | YES | YES |
| Parameter B accomplishment | YES | YES | YES | YES |
| Parameter C accomplishment | 100%* | 0%* | 100%* | 100% |
| Parameter D accomplishment | 100%* | 0%* | 100%* | 100% |
** The identified issue price cannot be lower than half of the average market price of shares in the last 3 months before the plan conditions fulfilment and granting the rights to acquire shares.
The fair value of employee share plans is estimated as of the options granting date based on a binominal model.
The expected period of options validity is determined on the basis of historical data and does not need to explicitly imply the possible ways of exercising them. The assumed volatility index reflects the assumption that the historical volatility index indicates future trends which, naturally, may be completely different in reality.
Upon the measurement of the fair value, no other characteristics concerning the granting of options were taken into consideration.
The Group monitors the probability of attaining the non-market parameters on an ongoing basis and takes them into account in the number of share options assumed for the valuation of the particular tranches as at the balance-sheet date.
The Group recognises the scheme costs proportionally to the vesting period for options granted to the employees.
The amounts recognised below increased remuneration costs in the period as well as the Group equity.
| Costs of the options plans | 2023 | 2022 |
|---|---|---|
| 2020 tranche of the 2020 plan | 1,821 | 2,429 |
| 2021 tranche of the 2020 plan | 12,115 | 2,361 |
| 2022 tranche of the 2020 plan | 1,183 | 296 |
| 2023 tranche of the 2023 plan | 2,257 | 0 |
| Total options costs in the period | 17,376 | 5,086 |
Future costs of share options plans are as follows:
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| 2021 tranche of the 2020 plan | 5,022 | 0 | 0 |
| 2022 tranche of the 2020 plan | 1,147 | 860 | 0 |
| 2023 tranche of the 2023 plan | 7,457 | 7,454 | 5,591 |
| Total | 13,626 | 8,314 | 5,591 |