SHINHAN FINANCIAL GROUP CO LTD | CIK:0001263043 | 3

  • Filed: 4/30/2018
  • Entity registrant name: SHINHAN FINANCIAL GROUP CO LTD (CIK: 0001263043)
  • Generator: Fujitsu
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    • ifrs-full:DisclosureOfTermsAndConditionsOfSharebasedPaymentArrangementExplanatory

    39. Share-based payments

     

      (a) Stock options granted as of December 31, 2017 are as follows:

     

        4th grant(*1)     5th grant(*1)     6th grant(*1)     7th grant(*1)(*2)  

    Grant date

    		     March 30, 2005       March 21, 2006       March 20, 2007       March 19, 2008  

    Exercise price in won

    		     W28,006       W38,829       W54,560       W49,053  

    Number of shares granted

    		     2,695,200       3,296,200       1,301,050       808,700  

    Options expiry dates

    		     August 30, 2018       August 21, 2019       August 19, 2020      


    		 May 17, 2021/

    September 17,
    2021

    		  

     
     

    Changes in number of shares granted:

     

    		      

    Balance at January 1, 2017

    		     102,389       108,356       58,764       45,628  

    Exercised

    		     (99,889 )      (105,856 )      —         —    
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Balance at December 31, 2017

    		     2,500       2,500       58,764       45,628  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  
             




    		 W5,401

    (Expiration of
    contractual
    exercise period :
    May 17, 2021)

    		  

     
     
     
     

    Fair value per share in won

    		  

    W

    21,394

     

    		  

    W

    10,571

     

    		  

    W

    3,154

     

    		  

     

    W5,536

    (Expiration of
    contractual
    exercise period :
    Sep 17, 2021)

     

     
     
     
     

     

    (*1) The equity instruments granted are fully vested as of December 31, 2017. The weighted average exercise price in won for 109,392 stock options outstanding at December 31, 2017 is W51,297.
    (*2) As of December 31, 2017, the exercise of the remaining for 9,466 stock options (7th grant) was temporarily suspended.

     

      (b) Performance shares granted as of December 31, 2017 are as follows:

     

        Expired     Not expired  

    Type

    		     Cash-settled share-based payment  

    Performance conditions

    		    
    		 Increase rate of the stock price and
    achievement of target ROE    		  
     

    Operating period(*)

    		     4 or 5 years  

    Estimated number of shares vested at December 31, 2017

    		     273,541       1,165,525  

    Fair value per share in won

    		    



    		 W45,926,
    W47,376,
    W40,889,
    W45,766  and
    W49,405    		  
     
     
     
         		     W49,400  

     

      (*) Four-year period is applied from the beginning of the year that the grant date belongs while five-year period for the shares with deferred payment.

    The amount of cash payment for the Group’s cash-settled share-based payment arrangements with performance conditions is determined at the fourth anniversary date from the grant date based on the share price which is an arithmetic mean of weighted average share prices of the past two-months, past one-month and past one-week. Share price to be paid in the future is evaluated using the share price as of the end of the reporting period. For share-based payment transactions among the Group, Shinhan Financial Group receiving the services shall measure the services received as a cash-settled and the subsidiaries measure as an equity-settled share-based payment transaction, respectively.

     

      (c) Share-based compensation costs for the years ended December 31, 2015, 2016 and 2017 are as follows:

     

         2015  
         Employees of         
         The controlling
    company    		      The subsidiaries      Total  

    Stock options granted :

    		         

    4th

    		    W (44 )       (458 )       (502 ) 

    5th

    		      (31 )       (500 )       (531 ) 

    6th

    		      —          —          —    

    7th

    		      (4 )       (15 )       (19 ) 

    Performance shares

    		      1,599        13,878        15,477  
      

     

     

    		     

     

     

    		     

     

     

    		  
       W 1,520        12,905        14,425  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

         2016  
         Employees of         
         The controlling
    company    		      The subsidiaries      Total  

    Stock options granted:

    		         

    4th

    		    W 51        533        584  

    5th

    		      36        582        618  

    6th

    		      —          —          —    

    7th

    		      —          —          —    

    Performance shares

    		      2,890        23,845        26,735  
      

     

     

    		     

     

     

    		     

     

     

    		  
       W 2,977        24,960        27,937  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

         2017  
         Employees of         
         The controlling
    company    		      The subsidiaries      Total  

    Stock options granted:

    		         

    4th

    		    W 67        413        480  

    5th

    		      48        757        805  

    6th

    		      26        159        185  

    7th

    		      83        120        203  

    Performance shares

    		      1,782        15,717        17,499  
      

     

     

    		     

     

     

    		     

     

     

    		  
       W 2,006        17,166        19,172  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

      (d) Accrued expenses and the intrinsic value as of December 31, 2016 and 2017 are as follows:

     

         2016  
         Employees of         
         The controlling
    company    		      The subsidiaries      Total  

    Stock options granted:

    		         

    4th

    		    W 155        1,611        1,766  

    5th

    		      41        655        696  

    6th

    		      —          —          —    

    7th

    		      —          —          —    

    Performance shares

    		      7,433        57,638        65,071  
      

     

     

    		     

     

     

    		     

     

     

    		  
       W 7,629        59,904        67,533  
      

     

     

    		     

     

     

    		     

     

     

    		  

     

    The intrinsic value of share-based payments is W67,533 million as of December 31, 2016. For calculating, the quoted market price W45,250 per share was used for stock options and the fair value was considered as intrinsic value for performance shares, respectively.

     

         2017  
         Employees of         
         The controlling
    company    		      The subsidiaries      Total  

    Stock options granted:

    		         

    4th

    		    W —          54        54  

    5th

    		      —          26        26  

    6th

    		      26        159        185  

    7th

    		      83        120        203  

    Performance shares

    		      8,286        62,769        71,055  
      

     

     

    		     

     

     

    		     

     

     

    		  
       W 8,395        63,128        71,523  
      

     

     

    		     

     

     

    		     

     

     

    		  

    The intrinsic value of share-based payments is W71,151 million as of December 31, 2017. For calculating, the quoted market price W49,400 per share was used for stock options and the fair value was considered as intrinsic value for performance shares, respectively.