Singapore Airlines 2007 Annual Report Download - page 68

Singapore Airlines 66 Annual Report 2006-07
REPORT BY THE BOARD OF DIRECTORS
5 Options on Shares in the Company
(i) Employee Share Option Plan
The Singapore Airlines Limited Employee Share Option Plan (“the Plan”), which comprises the Senior Executive Share
Option Scheme and the Employee Share Option Scheme for senior executives and all other employees respectively,
was approved by shareholders on 8 March 2000.
Under the Plan, all options to be issued will have a term no longer than 10 years from the date of grant. The exercise
price of the option will be the average of the closing prices of the Company’s ordinary shares on the Singapore
Exchange Securities Trading Limited (“SGX-ST”) for the fi ve market days immediately preceding the date of grant.
Under the Employee Share Option Scheme, options will vest two years after the date of grant.
Under the Senior Executive Share Option Scheme, options will vest:
(a) one year after the date of grant for 25% of the ordinary shares subject to the options;
(b) two years after the date of grant for an additional 25% of the ordinary shares subject to the options;
(c) three years after the date of grant for an additional 25% of the ordinary shares subject to the options; and
(d) four years after the date of grant for the remaining 25% of the ordinary shares subject to the options.
At the date of this report, the Board Compensation & Industrial Relations Committee which administers the Plan
comprises the following directors:
Stephen Lee Ching Yen – Chairman
David Michael Gonski (appointed on 14 August 2006)
James Koh Cher Siang (appointed on 14 August 2006)
Sir Brian Pitman
No options have been granted to controlling shareholders or their associates, or parent group employees.
No employee has received 5% or more of the total number of options available under the Plan.
The options granted by the Company do not entitle the holders of the options, by virtue of such holding, to any
rights to participate in any share issue of any other company.
During the fi nancial year, in consideration of the payment of $1.00 for each offer accepted, offers of options were
granted pursuant to the Plan in respect of 12,777,119 unissued shares in the Company at an exercise price of
$12.60 per share.
At the end of the fi nancial year, options to take up 68,338,907 unissued shares in the Company were outstanding:
Number of options to subscribe
for unissued ordinary shares
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Balance at
1.4.2006/later Balance at Exercise
Date of grant date of grant Cancelled Exercised 31.3.2007 price Exercisable period
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28.3.2000 11,851,610 (350,435) (1,811,285) 9,689,890 $15.34 28.3.2001 – 27.3.2010
3.7.2000 11,015,170 (323,800) (906,630) 9,784,740 $16.65 3.7.2001 – 2.7.2010
2.7.2001 10,278,270 (101,355) (5,054,298) 5,122,617 $11.96 2.7.2002 – 1.7.2011
1.7.2002 11,841,523 (62,840) (4,513,839) 7,264,844 $12.82 1.7.2003 – 30.6.2012
1.7.2003 9,076,029 (67,330) (4,019,264) 4,989,435 $10.34 1.7.2004 – 30.6.2013
1.7.2004 11,972,838 (107,251) (5,152,680) 6,712,907 $10.70 1.7.2005 – 30.6.2014
1.7.2005 13,161,126 (298,517) (658,084) 12,204,525 $11.28 1.7.2006 – 30.6.2015
3.7.2006 12,777,119 (194,630) (12,540) 12,569,949 $12.60 3.7.2007 – 2.7.2016
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91,973,685 (1,506,158) (22,128,620) 68,338,907
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