Operating and Financial Results

13. Personnel Expenses
Year ended December 31, 2014 Year ended December 31, 2013
Short-term benefits except for share-based payments

4 452 393

3 955 335

Payroll related taxes

708 544

583 917

Share-based payment expense

233 827

287 752

Total personnel expenses

5 394 764

4 827 004

The Group grants equity-settled share options to senior management and some employees. The options give to holders a choice either to purchase the full number of shares at exercise price or to get shares in amount of fair value of the option at exercise date for free. A majority of the options vest when the employee continues to be employed by the Group at the vesting date. The maximum contractual term of the options is four years. The fair value of the options is measured at the grant date using a binomial model taking into account the terms and conditions upon which the instruments were granted.

The following table illustrates the number and weighted average exercise prices (WAEP) of, and movements in, share options:
Number WAEP
Outstanding at 1 January 2013 42 027 058 47,53
Granted 14 500 004 47,86
Exercised (1 781 053) 49,05
Forfeited (5 533 337) 46,90
Expired (5 888 948) 49,05
Outstanding at 31 December 2013 43 323 724 47,50
Granted 500 000 60,64
Exercised (4 791 769) 48,12
Forfeited (133 334) 46,90
Expired (6 041 264) 48,12
Outstanding at 31 December 2014 32 857 357 47,50

WAEP for exercised options in the table above is calculated based on the contractual exercise price.

The weighted average share price for share options exercised in 2014 at the date of exercise was RUB 63,40 (in the year ended December 31, 2013: RUB 57,24).

The weighted average remaining contractual life for the share options outstanding as at December 31, 2014 was 0,51 years (December 31, 2013: 0,97 years). The weighted average fair value of options granted during the year ended December 31, 2014 was RUB 19,98 (December 31, 2013: RUB 17,04) per 1 option. Exercise prices for options outstanding as at December 31, 2014 were RUB 46,9 — RUB 60,64 (December 31, 2013: RUB 46,9 — RUB 55).

The following table lists the inputs to the models used:
Assumption Value
Expected volatility 32,2%
Risk-free interest rate 14,7%
Weighted average share price, RUB 61,37
Dividend yield 5,1%

The volatility assumption is based on implied volatilities of quoted shares of similar stock exchanges.

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