23.1.2. Fair value of share options
Fair value of share options
| 2020 plan, 2022 tranche | 2020 plan, 2021 tranche | 2020 plan, 2020 tranche | |
|---|---|---|---|
| Date of granting options | 13 October 2022 | 19 October 2021 | 16 September 2020 |
| Number of options granted to the Group employees | 90,000 | 90,000 | 90,000 |
| Expected dividends | PLN 268.72 | PLN 252.16 | PLN 199.67 |
| Assumed volatility index for the underlying instrument | 19% | 17% | 16% |
| Historical volatility index (%) | 30% | 28% | 27% |
| Risk-free interest rate (%) | 7.8% | 2.4% | 1% |
| Expected period of options validity (in months) | 72 months | 72 months | 72 months |
| Weighted average share price (PLN) | 358.10 | 358.10 | 358.10 |
| Plan fair values at launch date in PLN ‘000 PLN | 9,878 | 20,089 | 7,556 |
| Parameter A accomplishment | YES | YES | YES |
| Parameter B accomplishment | YES | YES | YES |
| Parameter C accomplishment | 0%* | 0%* | 100% |
| Parameter D accomplishment | 0%* | 0%* | 100% |
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 balancesheet 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 | 2022 | 2021 |
|---|---|---|
| 2020 tranche of the 2020 plan | 2,429 | 2,648 |
| 2021 tranche of the 2020 plan | 2,361 | 590 |
| 2022 tranche of the 2020 plan | 296 | 0 |
| Total options costs in the period | 5,086 | 3,238 |
Future costs of share options plans are as follows:
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| 2020 tranche of the 2020 plan | 1,822 | 0 | 0 |
| 2021 tranche of the 2020 plan | 2,361 | 1,771 | 0 |
| 2022 tranche of the 2020 plan | 1,184 | 1,184 | 888 |
| Total | 5,367 | 2,955 | 888 |
Tabular compilation of the information about managerial options of the Group employees:
| Balance as at 31.12.2022 | 2022 tranche | 2021 tranche | 2020 tranche |
|---|---|---|---|
| Number of options granted | 90,000 | 90,000 | 90,000 |
| Number of options expired due to the failure to comply with the condition of being employed for three years from the plan launch date | 0 | 0 | 2,000 |
| Number of options which do not meet non-market parameters: C and D | 54,000 | 54,000 | 0 |
| Number of options assumed for valuation | 36,000 | 36,000 | 88,000 |
| Number of options granted | Vesting pending | Vesting pending | Vesting pending |
| Number of options which were not taken up by the balance-sheet date | 90,000 | 90,000 | 88,000 |
| Number of options exercised | 0 | 0 | 0 |
| Programme launch date | 13 October 2022 | 19 October 2021 | 16 September 2020 |
| Date of acquiring rights to options | 30 September 2025 | 30 September 2024 | 30 September 2023 |
| Plan termination date | 30 September 2028 | 30 September 2027 | 30 September 2026 |
| Total plan period | 72 months | 72 months | 72 months |
| The remaining period to acquire rights | 33 months | 21 months | 9 months |
| Option exercise price | PLN 358.10 per share | PLN 358.10 per share | PLN 358.10 per share |