The Group operates a number of share-based payment schemes. During 2015, 249,493 (2014: 416,296) options within the schemes were exercised. The total charge for the year relating to employee share-based payment plans was GBP 0.6 million (2014: GBP 0.5 million), all of which related to equity-settled share-based payment transactions.
More information about Share-based payments can be found in Note 20 in the Annual Reports.
Performance Share Plan (PSP)
The introduction of the Kindred Group plc Performance Share Plan was approved at the 2013 AGM under which future share based payments to senior management and key employees will be made. The PSP performance measures are non-market based conditions providing participants with a high degree of alignment to Company performance.
Grants of performance share rights are subject to achieving business performance targets over three financial years and continued employment. These targets are: Gross Contribution (Gross winnings revenue less Cost of sales less marketing costs), Free Cash Flow per Share and EBITDA. Grants made in each year will have targets measured on an aggregate basis between the full year of grant and the two successive years so that performance in each financial year will be important. Aggregated performance against the targets and the resulting allocation of PSP awards will be disclosed after the full year of vesting. Grants made under the Plan during 2015 will vest after 1 November 2018. Performance share rights are issued in respect of new shares to be issued when the rights are exercised.
Executive Share Option Schemes (ESOS)
The Unibet Group plc ESOS was first introduced in December 2000 and revised in May 2004. Following the introduction of the PSP, no future share -based payments will be made under the ESOS. However, the scheme will continue until all outstanding options have vested or lapsed.
The Company operates two ESOS schemes: the Kindred Group plc Unapproved Executive Share Option Scheme (the ‘Unapproved Scheme’) and the Unibet Group plc Approved Executive Share Option Scheme (the ‘Approved Scheme’) under which employees may acquire ordinary shares or SDRs.
The difference between the schemes is that the Unapproved Scheme does not comply with the relevant United Kingdom tax legislation while options granted under the Approved Scheme attract UK tax benefits. Under the Approved Scheme a participant may not hold HM Revenue and Customs (HMRC) approved options over more than GBP 30,000 worth of ordinary shares (valued at date of grant); alterations to key features of the Approved Scheme are subject to the prior approval of HMRC; the Directors can make, without shareholder approval, amendments to the Approved Scheme to obtain or maintain HMRC approval.
6,085 options and performance shares lapsed or were cancelled during 2015 (2014: 18,410). If all share-based programmes are fully exercised, the nominal share capital of the Company will increase by a total maximum of GBP 569.36
(2014: GBP 1,642.78) by the issue of a total maximum of 910,976 ordinary shares (2014: 2,628,448 ordinary shares), corresponding to 0.39 per cent (2014: 1.14 per cent) of the capital and votes in the Company.