YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 278 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 January 2024 29. SHARE-BASED COMPENSATION PLANS (CONTINUED) (c) Employees’ Long-Term Incentive Plan (continued) (e) Pursuant to Clause 21.1 of the by-laws of the ESS (hereinafter “By-Laws”), the NRC may, in its sole discretion, settle any unvested Yinson Shares by way of equity settlement or cash settlement prior to the termination of the ESS or expiry of the LTIP. Any unvested Yinson Shares shall automatically lapse and cease to be capable of vesting in the event the ESS expires or terminates in accordance with the terms of the By-Laws. (f) There were no Yinson Shares awarded and performance bonuses paid to the Group’s eligible employees and executive director under the LTIP in the financial years ended 31 January 2024 and 2023. (g) The fair value of the Yinson Shares at grant date is determined using the Monte Carlo Simulation model, taking into account the terms and conditions upon which the shares were granted, share price at grant date, expected price volatility of the underlying shares, expected dividend yield, risk-free interest rate for the term of the LTIP and on the basis that the maximum number of Yinson Shares available for each tranche under the LTIP will be allotted and issued to eligible employees and executive director of the Group. The significant inputs in the model used were as follows: Grant date 3 August 2020 Share price at grant date (RM) 6.27 Risk free rate (%) 2.16 Expected volatility (%) 25 Expected dividend yield (%) 1.48 Fair value of Yinson Shares at date of award (RM):* - Tranche 1 at 1-month VWAP of RM 2.77 2.12 - Tranche 2 at 1-month VWAP of RM 3.20 1.70 - Tranche 3 at 1-month VWAP of RM 3.69 1.35 - Tranche 4 at 1-month VWAP of RM 4.69 0.73 * Adjusted following the Bonus Issue and Rights Issue. See Note 29(e) for more details. The expected dividend yield used was based on future estimates, which may not necessarily be the actual outcome. The expected price volatility is based on average historical volatility over a 4-year period on a daily basis. (h) On 14 December 2023, the Board of Directors of the Company approved the cancellation of the LTIP and compensation to the participants on the cancellation of the LTIP in the form of RSUs (“RSU in Lieu of LTIP”). On 31 December 2023, RSUs in Lieu of LTIP were granted and awarded to the eligible LTIP participants for each of the calendar years 2020, 2021 and 2022 where the LTIP was effective.
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