164 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
9. EMPLOYEE BENEFITS Defined contribution pension scheme The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable to the fund and amounted to £7m (2023: £6m). Employee share plans The Group operates a number of employee share option plans. Details of those plans are as follows: Long Term Incentive Plans (“LTIP”) The Group has made awards under the LTIP to Executive Directors and other senior managers. Awards granted prior to 9 May 2023 were granted under the Just Retirement Group plc 2013 Long Term Incentive Plan. Awards granted since 9 May 2023 are granted under the Just Group plc Long Term Incentive Plan. Awards are made in the form of nil-cost options which become exercisable on the third anniversary of the grant date, subject to the satisfaction of service and performance conditions set out in the Directors’ Remuneration report. Performance conditions include a range of measures regarding financial metrics and Environmental Social and Governance “ESG” targets. Options are exercisable until the tenth anniversary of the grant date, with the exception for good leavers in respect of awards granted after 9 May 2023 which are exercisable until the first anniversary of the vesting date. The majority of options granted are also subject to a two-year holding period after the options have vested. The options are accounted for as equity-settled schemes. The number and weighted-average remaining contractual life of outstanding options under the LTIP are as follows:
Year ended 31 December 2024 Number of options
Year ended 31 December 2023 Number of options
Outstanding at 1 January
26,004,780 7,005,523 (2,466,040) (5,311,380)
25,935,723 9,544,856 (2,902,296) (6,573,503)
Granted Forfeited Exercised
Expired
(19,450)
–
Outstanding at 31 December
25,213,433
26,004,780
Exercisable at 31 December
3,119,011
4,546,466
Weighted-average share price at exercise (£) Weighted-average remaining contractual life (years)
1.08 1.06
0.85 1.14
The exercise price for options granted under the LTIP is nil. During the year to 31 December 2024, awards of LTIPs were made on 28 March 2024, 18 April 2024 and 9 September 2024. The weighted- average fair value and assumptions used to determine the fair value of the LTIPs and the Buy-out options granted during the year are as follows:
2024 awards
2023 awards
Fair value at grant date Option pricing model used
£0.95
£0.77
Black–Scholes, Stochastic, Finnerty
Black–Scholes, Stochastic, Finnerty
Share price at grant date
£1.05
£0.84
Exercise price
Nil
Nil
Expected volatility – TSR performance Expected volatility – holding period Option life (including 2-year holding period)
34.70% – 37.89%
41.34%
37.45% 37.52% – 37.60%
2.93, 3.93 and 5 years
5 years
Dividend yield
Nil HUB awards – 2.05% Other – Nil
Risk-free interest rate – TSR performance Risk-free interest rate – holding period
4.11% – 4.59%
3.44%
3.94% 3.25% – 3.41%
A Stochastic model is used where vesting is related to a total shareholder return target, a Black-Scholes option pricing model is used for all other performance vesting targets, and a Finnerty model is used to model the holding period.
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