23 OTHER NOTES TO THE ACCOUNTS
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Accounting policy The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards, the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over the vesting period as an expense, with a corresponding increase in retained earnings. |
The Group operates the following equity-settled executive and employee share plans: Smith & Nephew 2001 US Share Plan, Smith & Nephew Global Share Plan 2010, Smith & Nephew ShareSave Plan (2012), Smith & Nephew International ShareSave Plan (2012) and the Smith & Nephew France ShareSave plan (2012). At 31 December 2017, 5,277,000 options (2016: 5,780,000, 2015: 7,235,000) were outstanding with a range of exercise prices from 535 to 1,092 pence.
At 31 December 2017, the maximum number of shares that could be awarded under the Group’s long-term incentive plans was 5,854,000 (2016: 5,807,000; 2015: 6,402,000). These include conditional share awards granted to senior employees and equity and performance share awards granted to senior executives under the Global Share Plan 2010.
The expense charged to the income statement for share-based payments for the year is $31m (2016: $27m, 2015: $30m).
23.2 Related party transactions
Trading transactions
In the course of normal operations, the Group traded with its associates detailed in Note 11. The aggregated transactions, which have not been disclosed elsewhere in the financial statements are $nil (2016: $nil, 2015: $nil).
Key management personnel
The remuneration of executive officers (including Non-Executive Directors) during the year is summarised below:
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|
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2017 |
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2016 |
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2015 |
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|
|
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$ million |
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$ million |
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$ million |
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|
Short-term employee benefits |
|
15 |
|
15 |
|
16 |
|
|
Share-based payments expense |
|
7 |
|
7 |
|
8 |
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|
Pension and post-employment benefit entitlements |
|
1 |
|
1 |
|
1 |
|
|
Compensation for loss of office |
|
3 |
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– |
|
– |
|
|
|
|
26 |
|
23 |
|
25 |
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