REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 18. Share-based payments (continued) (b) Deferred equity plan The deferred equity plan operates in the same manner as the Groupʼs LTI plan, for certain non-executive employees, dependent on their position in the Groupʼs remuneration framework. The performance measures approved by the Board for these employees are based upon personal performance and Group revenue and EBITDA annual growth rate achievement over the performance period. Plans issued during the year also include a performance measure based upon relative Total Shareholder Returns over the performance period. Rights are vested after the performance period. The deferred equity plan 2021 rights performance period ended on 30 June 2021 and they will vest upon approval by the Board in August 2021. As all other performance periods conclude in the future, no performance rights are exercisable (or have been exercised) at balance date. The fair value of each performance right is estimated on the grant date using the Black Scholes model. The tables below summarise the movement in the Groupʼs deferred equity plan during the year and other information required to understand how the fair value of the equity instruments has been determined. Plan Performance period Balance at start of the year Number Granted during the year Number Exercised during the year 1 Number Forfeited/ cancelled during the Number Balance at end of the year 2 Number Deferred equity plan 2020 1 July 2018 – 30 June 2020 23,044 – (11,531) (11,513) – Deferred equity plan 2021 1 July 2019 - 30 June 2021 23,093 – – (1,336) 21,757 Deferred equity plan 2022 1 July 2020 - 30 June 2022 – 23,833 – (920) 22,913 Total 46,137 23,833 (11,531) (13,769) 44,670 1 The weighted average share price over the settlement period for these rights was $117.95. 2 The weighted average remaining contractual life of these rights at the end of the reporting period is seven months. Plan Value per right at measurement date Expected volatility 1 Risk‑free interest rate Expected life of performance Annual dividend yield Deferred equity plan 2021 $136.50 - $142.35 40.0% 0.0% 26 months 1.0% Deferred equity plan 2022 $131.45 - $140.95 37.5% 0.1% 26 months 1.0% 1 The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the rights is indicative of future trends, which may not necessarily be the actual outcome. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 103