Singapore Airlines 2007 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2007 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

NOTES TO THE FINANCIAL STATEMENTS
31 March 2007
Singapore Airlines 107 Annual Report 2006-07
13 Share Capital (in $ million) (continued)
Share-based incentive plans
During the fi nancial year, the Company introduced two new share-based incentive plans for senior management staff.
The plans were approved by the shareholders of the Company on 28 July 2005. Similar share-based incentive plans
were introduced and approved by the shareholders of SATS and SIAEC on 19 July 2005 and 25 July 2005 respectively.
The details of the two plans are described below:
RSP PSP
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Plan Description Award of fully-paid ordinary shares Award of fully-paid ordinary shares
of the Company, conditional on of the Company, conditional on
position and individual performance performance targets set at the start of
targets set at the start of a two-year a three-year overlapping performance
performance period based on period based on stretched long-term
medium-term Group and corporate objectives.
Company objectives.
Date of Grant
SIA 27 July 2006 27 July 2006
SATS 2 October 2006 2 October 2006
SIAEC 3 July 2006 3 July 2006
Performance Period 1 April 2006 to 31 March 2008 1 April 2006 to 31 March 2009
Performance Conditions
SIA At both Company and Group level
• EBITDAR# Margin • Absolute Total Shareholder Return
(TSR) outperform Cost of Equity (COE)
• Value Added per $ Employment Cost • Relative Total Shareholder
Return (TSR) against selected
airline peer index companies
SATS At SATS Group level
• EBITDA* Margin • Absolute TSR
• Value Added per $ Employment Cost • Absolute Return on Equity (ROE)
SIAEC At SIAEC Group level
• EBITDA* Margin • Absolute TSR outperform COE
• Value Added per $ Employment Cost • ROE
Vesting Condition Based on meeting stated performance Vesting based on meeting stated
conditions over a two-year performance performance conditions over a three-year
period, 50% of award will vest. Balance performance period.
will vest equally over the subsequent two
years with fulfi lment of service
requirements.
Payout 0% – 120% depending on the 0% – 150% depending on the
achievement of pre-set performance achievement of pre-set performance
targets over the performance period. targets over the performance period.
# EBITDAR denotes Earnings before Interest, Taxes, Depreciation, Amortisation and Restructuring or Rent
* EBITDA denotes Earnings before Interest, Taxes, Depreciation and Amortisation