Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 381

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 381
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 only on service conditions

being met. The fair value of each award is based on the share price

on the day of grant. Forfeitures prior to vesting are assumed at 3%

per annum of outstanding awards ( 2023 : 3% per annum).

Global Employee Share Plans

The Global Employee Share Plans were re-approved by shareholders

in 2021. Under these plans, the companies provide a Matching share

award for each Investment share purchased by a participant. The

vesting of Matching awards is dependent on service conditions being

met and the continued holding of Investment shares by the participant

until vesting. These awards are settled in equity including the

dividends accumulated from date of award to vesting. The fair value

of each Matching share on the day of grant is equal to the share price

on the date of purchase less a deduction of 15% ( 5% per annum) for

estimated cancellations (caused by employees withdrawing their

Investment shares prior to vesting) in addition to a deduction for

forfeitures prior to vesting which are assumed at 5% per annum of

outstanding awards ( 2023 : 5% per annum).

The PSA, MSA, BDA and awards under the Global Employee Share

Plans and UK Share Plan together represent 100% ( 2023 : 100% ) of

the total IFRS 2 “Share-based Payment” charge for Rio Tinto plc and

Rio Tinto Limited plans in 2024 .

Recognition and measurement

These plans are accounted for in accordance with the fair value

recognition provisions of IFRS 2.

The fair value of the Group’s share plans is recognised as an expense

over the expected vesting period with an offset to retained earnings

for Rio Tinto plc plans and to other reserves for Rio Tinto Limited

plans.

The Group uses fair values provided by independent actuaries

calculated using a Monte Carlo simulation model where required.

The terms of each plan are considered at the balance sheet date to

determine whether the plan should be accounted for as equity-settled

or cash-settled. The Group does not operate any material plans as

cash-settled although certain awards can be settled in cash at the

discretion of the Directors or where settling awards in equity is

challenging or prohibited by local laws and regulations. The value of

these awards is immaterial.

The Group’s equity-settled share plans