5 2020 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements
No new free performance share plans were set up in 2020. At the Combined General Meeting of 9 June 2020, an overall limit of 3% of the share capital (i.e. 616,431 shares on the basis of the share capital at 31 December 2019) was set for all employee and Awards of free Sopra Steria Group shares are granted to some staff members, subject to their continued employment within the Group at the grant date, and either subject or not subject to conditions relating to the Group’s performance. Benefits granted under free share award plans constitute additional compensation and are measured and recognised in the financial statements. At the end of each reporting period, the Group reviews the potential number of shares that could be awarded based on the recipients present and estimates regarding the achievement of non-market performance conditions provided for under the plans. The impact of this re-estimate is recognised in profit or loss as an offset against equity. The value of free shares in awards granted to employees as compensation for services rendered is measured by reference to the fair value of the equity instrument at the grant date. This fair value is based on the share price at this same date. Non-market
company officer shareholding programmes (share subscription and share purchase options, BSAAR redeemable equity warrants, free shares, and share capital increases reserved for employees enrolled
in the company savings plan).
vesting conditions must not be taken into account when estimating the fair value of the shares at the measurement date. When these equity instruments are subject to conditions of non-transferability, the cost of non-transferability is taken into account in their fair value. Where appropriate, the inability to collect dividends is also taken into account in the fair value calculation. Lastly, the cumulative expense recognised also takes into account the estimated number of shares that will eventually vest. The expense related to share-based payments made to employees under free share plans is recognised on a straight-line basis in profit or loss over the vesting period, under Expenses related to stock options and related items, which enters into the calculation of Profit from recurring operations. Since this is an equity-settled plan, the double-entry for this expense is recognised in equity under the Consolidated reserves and other reserves heading.
Employee share ownership plan 5.4.2. In 2020, the Group did not set up any employee share ownership plans. Furthermore, the Share Incentive Plan – a special plan in place in the United Kingdom – continued and incurred an expense of €1.8 million.
Short-term employee benefits Post-employment benefits Other long-term employee benefits
Equity compensation benefits
Post-employment benefits correspond to retirement benefits established in accordance with collective bargaining agreements (see Note 5.3.1). There are no obligations toward senior executives with respect to post-employment benefits or other long-term employee benefits.
The compensation information provided in the table above relates to the Chairman of the Board of Directors, the Chief Executive Officer and all Directors holding a salaried position within the Group.