27. Share-based Payments
Options on participation certificates of Chocoladefabriken Lindt & Sprüngli AG are only outstanding within the scope of the existing employee stock option program. An option entitles an employee to a participation certificate at an exercise price, equal to the average of the price of the five days preceding the issue date. The options have a blocking period during the vesting period of three to five years and are expiring after seven years, if not being exercised. Changes in outstanding options can be viewed in the table below:
|
|
2023 |
|
2022 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Number of options |
|
Weighted average exercise price (CHF/PC) |
|
Number of options |
|
Weighted average exercise price (CHF/PC) |
||||
Outstanding options as at January 1 |
|
119,001 |
|
7,593 |
|
112,156 |
|
6,760 |
||||
New option rights |
|
23,000 |
|
9,602 |
|
24,233 |
|
10,251 |
||||
Exercised rights |
|
–19,130 |
|
5,851 |
|
–14,962 |
|
5,599 |
||||
Cancelled rights |
|
–2,811 |
|
8,622 |
|
–2,426 |
|
7,926 |
||||
Outstanding options as at December 311 |
|
120,060 |
|
8,232 |
|
119,001 |
|
7,593 |
||||
of which exercisable at December 31 |
|
26,197 |
|
6,357 |
|
22,514 |
|
5,653 |
||||
Average remaining time to expiration |
|
698 |
|
|
|
652 |
|
|
||||
|
||||||||||||
Options expenses are charged to the income statement proportionally according to the vesting period. The recorded expenses amount to CHF 19.3 million (CHF 16.0 million in prior year). Moreover, CHF 1.0 million deferred tax benefit on employee stock options in the USA were recorded directly in equity (CHF 14.9 million deferred tax expenses in prior year).
The assumptions used to calculate the expenses for the grants 2020 to 2023 are listed in the following table:
Date of issue |
|
11.1.2023 |
|
25.1.2022 |
|
29.1.2021 |
|
15.1.2020 |
|---|---|---|---|---|---|---|---|---|
Number of issued options |
|
23,000 |
|
24,233 |
|
28,980 |
|
27,070 |
of which in bracket A (blocking period 3 years) |
|
7,969 |
|
8,400 |
|
10,062 |
|
9,392 |
of which in bracket B (blocking period 4 years) |
|
8,090 |
|
8,509 |
|
10,203 |
|
9,534 |
of which in bracket C (blocking period 5 years) |
|
6,941 |
|
7,324 |
|
8,715 |
|
8,144 |
Issuing price (CHF) |
|
9,602 |
|
10,251 |
|
7,918 |
|
7,904 |
Price of participation certificates on date of issue (CHF) |
|
9,580 |
|
10,110 |
|
7,730 |
|
8,010 |
Value of options on issuing date (CHF) |
|
|
|
|
|
|
|
|
Bracket A (blocking period 3 years) |
|
1,274 |
|
784 |
|
519 |
|
651 |
Bracket B (blocking period 4 years) |
|
1,403 |
|
852 |
|
571 |
|
680 |
Bracket C (blocking period 5 years) |
|
1,498 |
|
905 |
|
613 |
|
712 |
Maximum life span (in years) |
|
7 |
|
7 |
|
7 |
|
7 |
Form of compensation |
|
PC from conditional capital |
||||||
Expected life span (in years) |
|
5–6 |
|
5–6 |
|
5–6 |
|
5–6 |
Expected rate of retirement per year |
|
2.8% |
|
2.6% |
|
2.5% |
|
2.3% |
Expected volatility |
|
17.8% |
|
15.5% |
|
14.9% |
|
14.6% |
Expected dividend yield |
|
1.47% |
|
1.53% |
|
1.60% |
|
1.65% |
Risk-free interest rate |
|
1,55–1,61% |
|
(0,55)–(0,47)% |
|
(0,55)–(0,46)% |
|
(0,46)–(0,38)% |
Model |
|
Binomial model |
||||||