Singapore Airlines 2007 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 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 109 Annual Report 2006-07
13 Share Capital (in $ million) (continued)
Share-based incentive plans (continued)
Under the PSP, eligible key executives are required to hold a portion of the shares released to them under a share
ownership guideline which requires them to maintain a benefi cial ownership stake in the Company, thus further aligning
their interests with shareholders.
The number of contingent shares granted but not released as at 31 March 2007, were 258,330 and 140,900 for RSP
and PSP respectively. Based on the achievement factor, the actual release of the awards could range from zero to a
maximum of 309,996 and 211,350 fully-paid ordinary shares of the Company, for RSP and PSP respectively.
SATS RSP and PSP
SATS RSP PSP
Expected dividend yield (%) Management’s forecast in line with dividend policy
Expected volatility (%) 19.54 – 24.24 22.78
Risk-free interest rate (%) 2.97 – 3.06 2.97
Expected term (years) 1.5 – 3.5 2.5
Cost of equity (%) N.A. 7.80
Share price at date of grant ($) 2.19 2.19
The details of the shares awarded under SATS RSP and PSP during the year since commencement of the plans are as
follows:
Number of Restricted
and Performance shares
––––––––––––––––––––––––––––––––––––
Date of grant Balance at
Share Plans 2.10.2006 31.3.2007
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
SATS RSP 182,030 182,030
SATS PSP 84,360 84,360
––––––––––––––––––––––––––––––––––––
266,390 266,390
––––––––––––––––––––––––––––––––––––
Based on the Monte Carlo simulation model, the estimated fair value at date of grant for each share granted under
the RSP ranges from $1.88 to $2.05 and the estimated fair value at date of grant for each share granted under the
PSP is $1.54.
The number of contingent shares granted but not released as at 31 March 2007, were 182,030 and 84,360 for RSP
and PSP respectively. Based on the achievement factor, the actual release of the awards could range from zero to a
maximum of 218,436 and 126,540 fully-paid ordinary shares of SATS, for RSP and PSP respectively.