Consolidated financial statements SECTION 7: STAFF COSTS AND REMUNERATION 120 Carlsberg Group Annual Report 2013 SHARE OPTION PROGRAMME LONG-TERM INCENTIVE PROGRAMME LONG-TERM INCENTIVE PLAN  (PERFORMANCE SHARES) Equity-settled scheme Each share option entitles the holder to purchase  one class B share in Carlsberg A/S. The options  may only be settled in shares. The Group has not  purchased a significant number of treasury shares  to meet this obligation. Treasury share holdings  at 31 December 2013 totalled 23,941 shares (2012:  1,587 shares). The long-term incentive programme is settled in performance share units  (PSUs). A participant in the programme will receive a number of PSUs,  each giving the right to receive one Carlsberg B share. The exact number  of PSUs granted is determined after the publication of the Annual Report  for the year in which the PSUs are granted.  The long-term incentive plan is settled in perfor- mance shares. A participant in the programme  will receive a number of Carlsberg B shares. For  each grant, the exact number of shares granted  is determined after the publication of the Annual  Report for the last year in the vesting period. Valuation The fair value of granted share options is estimated  using the Black-Scholes call option-pricing model  based on the exercise price.  The share price and the exercise price for share op- tions are calculated as the average price of Carlsberg  A/S’s class B shares on NASDAQ OMX Copenhagen  during the first five trading days after the publica- tion of Carlsberg A/S’s Annual Report following the  granting of the options. The calculation of the number of PSUs where no value has been deter- mined at year-end is based on the assumptions available at year-end  (preliminary). The final number of PSUs will be adjusted to reflect the  assumptions available at the time of vesting of each part of the long-term  incentive programme (final). The value of PSUs is calculated using the same method as for the share  option programme, although not until after the publication of the Annual  Report in the year following the grant year. The preliminary share price  and the value for PSUs granted under the long-term incentive programme  are the last available prices before 31 December of the reporting year. The value of the remuneration received under the long-term incen- tive programme is calculated as a predetermined percentage of the  employee’s yearly salary. Depending on the Group’s performance, this  percentage can be adjusted to a maximum of 150% of the predeter- mined percentage.  The calculation of the number of performance  shares is based on the estimated number of  performance shares expected to vest. The final  number of performance shares is the number that  ultimately vest. The fair value of performance shares is calcu- lated at the grant date using a stochastic valua- tion model. Time of valuation of option Immediately after publication of the Annual Report  for the Group for the prior reporting period. Immediately after publication of the Annual Report for the Group for the grant year. Immediately after publication of the Annual Re- port for the Group for the prior reporting period. Vesting conditions 3 years of service. 3 years of service and the Group’s financial performance for the grant year. 3 years of service and achievement of 4 KPIs  in the vesting period. Earliest time of exercise 3 years from grant date. - - Latest time of exercise 8 years from grant date. Shares are transferred to the employee immediately after PSUs have vested. Shares are transferred to the employee immediately after they have vested. SECTION 7.3  Share-based payment