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Share-based compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-based compensation
16. Share-based compensation
Share-based compensation relates primarily to awards granted under the 2025 Equity Incentive Plan (EIP), the 2014 Performance Share Plan (PSP) and the Company’s Savings-related Share Option Scheme. The expense, net of estimated forfeitures, is reflected in Operating income in the Consolidated Statements of Income.
The share-based compensation for these plans for the years ended December 31 was:
in $ millions202520242023
Equity Incentive Plan expense38––
Performance Share Plan expense 104123120
Share Option expense 123
Total share-based compensation143125123
Equity Incentive Plan
In May 2025, shareholders approved the adoption of the new EIP, which replaced the PSP. The EIP is intended to align employee and executive interests with long-term shareholder value creation. Under the EIP, the Company granted both PSUs and RSUs to eligible employees. No further awards will be granted under the PSP; however, outstanding awards under that plan will continue to vest under their original terms.
Performance Share Units
PSUs provide an employee with the right to receive shares of the Company’s stock, subject to fulfillment of certain market, performance and service conditions over a vesting period. The number of shares authorized under the EIP during the year ended December 31, 2025 did not exceed 10% of the issued share capital at that time. The performance conditions are as follows for the 2025 PSUs: 25% is subject to a Total Shareholder Return (TSR) performance measured against a tailored peer group; 25% is subject to a RONA target; with the remaining 50% subject to a cumulative cash flow target. Performance for the awards is assessed over a three-year period. Vesting outcomes for PSUs range from 0% to 200% of the target award based on performance.
The details of the awards granted under the EIP for the year ended December 31, 2025 were:
Number of sharesWeighted average grant date fair value
Shares in whole numbersAmounts in $
Outstanding at beginning of year–– 
Granted938,259103.13 
Forfeited(8,554)108.03 
Outstanding at end of year929,705103.30 
The fair value of (i) the portion of awards subject to a cash flow performance target; and (ii) the portion of awards subject to a RONA target; was calculated as the Company’s closing share price at the date the award was granted.
The fair value assigned to the portion of awards subject to a TSR performance metric was calculated using the Monte Carlo simulation model, at the grant date, taking account of peer group TSR, volatilities and correlations together with the following assumptions:
2025
Risk-free interest rate (%)3.93 
Expected volatility (%)29.99 
The expected volatility was determined using a historical sample of the Company’s daily share prices over a period equal to the expected term.
The risk-free interest rate is based on the U.S. Treasury bond yield at the grant date with a maturity period equal to the expected term.
During the year ended December 31, 2025, no shares vested. As of December 31, 2025, unrecognized compensation expense related to the awards was $74 million, which will be recognized over the remaining weighted average vesting period of 2.25 years.
Restricted Share Units
RSUs are time-based awards that entitle participants to receive shares of the Company’s stock, subject to continued employment. The number of shares authorized under the EIP during the year ended December 31, 2025 did not exceed 10% of the issued share capital at that time.
The details of the awards granted under the EIP for the year ended December 31, 2025 were:
Number of sharesWeighted average grant date fair value
Shares in whole numbersAmounts in $
Outstanding at beginning of year–– 
Granted726,10798.20 
Forfeited(935)113.98 
Outstanding at end of year725,17298.42 
The fair value was calculated as the Company’s closing share price at the date the award was granted.
During the year ended December 31, 2025, no shares vested. As of December 31, 2025, unrecognized compensation expense related to the awards was $54 million, which will be recognized over the remaining weighted average vesting period of 2.3 years.
2014 Performance Share Plan
The PSP authorizes the granting of conditional awards or nil-cost options (right to acquire shares during an exercise period without cost to the participant). The number of shares authorized under the PSP during the years ended December 31, 2025, 2024 and 2023 did not exceed 10% of the issued share capital at that time.
Under the PSP, the Company has granted PSUs to its employees. PSUs provide an employee with the right to receive shares of the Company’s stock, subject to fulfillment of certain market, performance and service conditions over a vesting period. The performance conditions are as follows for the 2024 and 2023 PSUs: 20% of each award made is subject to a TSR performance measured against a tailored peer group; 20% is subject to a RONA metric; 15% is subject to ESG metrics; with the remaining 45% subject to a cumulative cash flow metric. Performance for the awards is assessed over a three-year period.
The details of the awards granted under the PSP for the year ended December 31, 2025 were:
Number of sharesWeighted average grant date fair value
Shares in whole numbersAmounts in $Amounts in €
Outstanding at beginning of year8,298,58050.11 46.89 
Forfeited(39,456)60.34 56.33 
Vested(3,102,394)35.97 34.08 
Outstanding at end of year5,156,730 58.54 54.52 
During fiscal years 2024 and 2023, the weighted average grant date fair values were $79.52 (€73.85) and $48.55 (€45.57), respectively.
The fair value of (i) the portion of awards subject to a cash flow performance metric; (ii) the portion of awards subject to a RONA metric; (iii) the portion of awards subject to ESG metrics; and (iv) the portion of awards with no performance conditions (which are subject to a two-year service period) was calculated as the Company’s closing share price at the date the award was granted.
The fair value assigned to the portion of awards subject to a TSR performance metric was calculated using the Monte Carlo simulation model, at the grant date, taking account of peer group TSR, volatilities and correlations together with the following assumptions:
20242023
Risk-free interest rate (%)4.44 3.16 
Expected volatility (%)30.3 28.9 
The expected volatility was determined using a historical sample of the Company’s daily share prices over a period equal to the expected term.
The risk-free interest rate is based on the U.S. Treasury bond yield at the grant date with a maturity period equal to the expected term.
During the years ended December 31, 2025, 2024 and 2023, 3,102,394 shares vested having a fair value of $316 million; 3,080,029 shares vested having a fair value of $256 million, and 2,985,299 shares vested having a fair value of $147 million, respectively. As of December 31, 2025, unrecognized compensation expense related to the awards was $78 million, which will be recognized over the remaining weighted average vesting period of 0.74 years.
2021 Savings-related Share Option Scheme
The Company operates a Savings-related Share Option Scheme approved by shareholders in 2021. No options were granted during the years ended December 31, 2025, 2024 and 2023 and the impact of the scheme on the Company’s Consolidated Financial Statements is not material.