In 1997, the Company established an employee benefit trust ("the ESOP") with independent Trustees, to purchase and hold shares in the Company in trust to be used to satisfy options granted to eligible senior employees under the Company's share plans established from time to time.

The ESOP was established with the benefit of a gift equivalent to the set up and running costs. Purchase monies and costs required by the ESOP Trustees to purchase shares for and under the provisions of the trust are provided by way of an interest free loan from a Company subsidiary. The loan is repayable, in normal circumstances, out of monies received from senior employees when they exercise options granted to them over shares. Surplus shares are held by the ESOP Trustees to satisfy future option awards. The ESOP Trustees have waived their right to receive dividends on shares held in trust. The Remuneration Committee is charged with determining which senior employees are to be granted options, and in what number, subject to the relevant plan rules.

Number of shares held by ESOP Trustees

£0.50 ordinary shares

At January 1, 2024

635,801

Shares utilized during the year

(91,198)

At December 31, 2024

544,603

As an important retention tool and to align the long-term financial interests of our management with those of our shareholders, the Company adopted the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the "LTIP") for the Company's senior employees and the Luxfer Holdings PLC Non-Executive Directors Equity Incentive Plan (the "Director EIP") for the Non-Executive Directors.

The equity or equity-related awards under the LTIP and the Director EIP are based on the ordinary shares of the Company. The Remuneration Committee administers the LTIP and has the power to determine to whom the awards will be granted, the amount, type and other terms. Awards granted under the LTIP generally vest one-quarter each year over a four-year period, subject to continuous employment and certain other conditions, with the exercise period expiring six years after grant date. Awards granted under the Director EIP are non-discretionary, are purely time-based and vest over one year, with settlement occurring immediately on vesting.

In March 2024, a combined 155,000 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over a period of four years and expiring two years later. Also in March 2024, a maximum 392,000 awards were granted based on the achievement of shareholder return targets. In June 2024, a combined 47,000 Restricted Stock Units over ordinary shares were granted under the Director EIP, which were all time-based awards that would fully vest one year later

In March 2023, a combined 127,000 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over a period of four years and expiring two years later. Also in March 2023, a maximum 157,000 awards were granted based on the achievement of shareholder return targets. In June 2023, a combined 31,000 Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards that would fully vest one year later.

The actual tax benefit realized for the tax deductions from option exercises totaled $0.3 million, $0.4 million and $0.8 million in 2024, 2023 and 2022, respectively.


	Number of shares	Weighted- average exercise price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value ($M)
At January 1, 2024	713,097	$	1.00	3.0	$	6.4
Granted during the year	595,286	$	1.00
Exercised during the year	(138,146)	$	1.00
Accrued dividend awards	15,979	$	1.00
Lapsed during the year	(61,024)	$	1.00
At December 31, 2024	1,125,192	$	1.00	2.1	$	14.7
Options exercisable at December 31, 2024	17,851	$	1.00	2.6	$	0.2
Options expected to vest as of December 31, 2024	733,525	$	1.00	2.2	$	9.6

The weighted average fair value of options granted in 2024, 2023 and 2022 was estimated to be $7.13, $14.73 and $16.45 per share, respectively. The total intrinsic value of options that were exercised during 2024, 2023 and 2022 was $1.4 million, $1.7 million and $2.9 million, respectively. At December 31, 2024, the total unrecognized compensation cost related to share options was $3.2 million (2023: $2.8 million). This cost is expected to be recognized over a weighted average period of 1.8 years (2023: 2.4 years ).


	2024	2023	2022
Dividend yield (%)	4.40 - 6.03	3.15 - 3.32	2.75 3.41
Expected volatility range (%)	36.40 - 45.79	31.54 - 43.49	36.11 - 49.43
Risk-free interest rate (%)	3.87 - 5.08	3.67 - 5.16	1.28 - 2.99
Expected life of share options range (years)	1.00 - 4.00	1.00 - 4.00	0.50 - 4.00
Forfeiture rate (%)	5.00	5.00	5.00
Weighted average exercise price ($)	$1.00	$1.00	$1.00
Models used	Black-Scholes & Monte-Carlo	Black-Scholes & Monte-Carlo	Black-Scholes & Monte-Carlo

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome.

Employee share incentive plans The Company operates an all-employee share incentive plan in its U.K. and U.S. operations and may look to implement plans in other geographic regions.