Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 380

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 380
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, and includes US$ 24million ( 2023 : US$ 17million ) of provision for redundancy and severance payments.

| Annual Report on Form 20-F 2024 | 209 | riotinto.com |

Financial statements | Notes to the consolidated fin ancial statements

27 Share-based payments The Rio Tinto plc and Rio Tinto Limited share-based incentive plans are as follows. UK Share Plan The fair values of Matching and Free share awards are the market value of the shares on the date of award. The awards are settled in equity. Equity Incentive Plan Since 2018, all long-term incentive awards have been granted under the 2018 Equity Incentive Plans which allow for awards in the form of Performance Share Awards (PSA), Management Share Awards (MSA) and Bonus Deferral Awards (BDA) to be granted. In general, these awards will be settled in equity, including the dividends accumulated from date of award to vesting and therefore the awards are accounted for in accordance with the requirements applying to equity-settled share-based payment transactions. Performance Share Awards The vesting of these awards is dependent on service conditions being met; performance conditions apply. Awards granted in previous years (since 2018) are subject to a Total Shareholder Return (TSR) performance condition. Awards granted in 2024 are subject to both a TSR performance condition ( 80% weighting), and a decarbonisation measure ( 20% weighting). The fair value of the awards subject to a TSR performance condition is calculated using a Monte Carlo simulation model. For the part of the awards subject to a decarbonisation target, as this is a non-market related performance condition, the fair value is reviewed at each accounting date, based on the prevailing projected outcome. Forfeitures prior to vesting are assumed at 5% per annum of outstanding awards ( 2023 : 5% per annum). Management Share Awards

The vesting of these awards is dependent on service conditions being

met ; no performance conditions apply.

The fair value of each award on the day of grant is based on the

share price on the day of grant. Forfeitures prior to vesting are

assumed at 7% per annum of outstanding awards ( 2023 : 7% per

annum).

Bonus Deferral Awards

Bonus Deferral Awards provide for the mandatory deferral of 50% of

the bonuses for Executive Directors and Executive Committee

members .

The vesting of these awards is dependent