NCC Group plc Annual Report 2022

Notes to the Financial Statements continued for the year ended 31 May 2022

26 Share-based payments The Company has a number of share option schemes under which options to subscribe for the Company’s shares have been granted to Directors and colleagues, details of which are illustrated in the tables below. Expected term of options represents the period over which the fair value calculations are based. The share-based payment charge for the year was £3.9m (2021: £2.8m) of which £3.4m (2021: £2.3m) related to equity settled payments and £0.5m (2021: £0.5m) to cash settled payments. The share-based payments charge increased during the year due to the introduction of new schemes in the year with a higher fair value than historical schemes that have reached maturity in the current year. Company Share Option (CSOP) scheme – equity settled Under the CSOP scheme, options will vest if the average EPS growth for the three years following their grant is greater than 10% per annum. Options granted in September 2019 do not have any performance criteria.

2022 Number outstanding

Expected term of options

Exercisable between

Exercise price £1.36 £2.20 £2.20 £1.79

Date of grant

– – –

July 2012

7 years 7 years 7 years 7 years

July 2015–July 2022

August 2018 August 2018

August 2021–August 2028 August 2021–August 2028

324,001

September 2019

September 2022–September 2029

Sharesave schemes – equity settled The Company operates sharesave schemes, which are available to all colleagues based in the UK, the Netherlands, Denmark, Spain and Australia, and full-time Executive Directors of the Company and its subsidiaries who have worked for a qualifying period.

2022 Number outstanding

Expected term of options

Exercisable between

Exercise price £1.56 £1.58 £1.75 £0.99 £1.84 £1.84 £2.15 £2.15 £1.52

Date of grant

– –

August 2017 March 2018 August 2018 March 2019 March 2020 March 2020 May 2021 May 2021

3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years

October 2020–March 2021 May 2021–October 2021 October 2021–March 2022 May 2022–October 2022 May 2023–October 2023 May 2023–October 2023 July 2023–December 2023 July 2023–December 2023 May 2025–November 2025 May 2023–November 2025

3,493

106,040 456,752 233,482 135,518 554,050 457,772

May 2022 May 2022

£1.52 1,767,606

Colleague stock purchase plan – equity settled The Company operates a stock purchase plan, which is available to all US-based colleagues who have worked for a qualifying period. All options are to be settled by equity. Under the scheme the following options have been granted and are outstanding at year end.

2022 Number outstanding

Expected term of options

Exercisable in

Exercise price £2.15 £1.58

Date of grant

May 2021 May 2022

1 year 1 year

May 2022 May 2023

506,218

Incentive Stock Option (ISO) scheme – equity settled Under the ISO scheme, options granted will be subject to performance criteria. Options will vest if the average EPS growth for the three years following their grant is greater than 10% per annum.

2022 Number outstanding

Expected term of options

Exercisable between

Exercise price £2.22 £1.82

Date of grant

August 2018

7 years August 2021–August 2028 7 years September 2022–September 2029

60,434

September 2019

192

NCC Group plc — Annual report and accounts for the year ended 31 May 2022

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