Singapore Airlines 2007 Annual Report Download - page 70

Singapore Airlines 68 Annual Report 2006-07
5 Options on Shares in the Company (continued)
(i) Employee Share Option Plan (continued)
(b) SIA Engineering Company Limited (“SIAEC”) (continued)
At the end of the fi nancial year, options to take up 49,731,288 unissued shares in SIAEC were outstanding:
Number of options to subscribe
for unissued ordinary shares
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Balance at
1.4.2006/later Balance at Exercise
Date of grant date of grant Cancelled Exercised 31.3.2007 price * Exercisable period
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
28.3.2000 6,038,400 (81,600) (3,705,800) 2,251,000 $1.65 28.3.2001 – 27.3.2010
3.7.2000 5,008,150 (85,200) (2,915,337) 2,007,613 $1.55 3.7.2001 – 2.7.2010
2.7.2001 3,169,650 (49,200) (2,016,550) 1,103,900 $ 1.01 2.7.2002 – 1.7.2011
1.7.2002 11,049,975 (12,800) (5,166,050) 5,871,125 $1.98 1.7.2003 – 30.6.2012
1.7.2003 3,811,625 (5,850) (2,017,550) 1,788,225 $1.35 1.7.2004 – 30.6.2013
1.7.2004 14,956,875 (21,200) (9,143,125) 5,792,550 $1.69 1.7.2005 – 30.6.2014
1.7.2005 16,190,900 (220,100) (126,325) 15,844,475 $2.25 1.7.2006 – 30.6.2015
3.7.2006 15,244,800 (172,400) – 15,072,400 $3.44 3.7.2007 – 2.7.2016
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
75,470,375 (648,350) (25,090,737) 49,731,288
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
* At the extraordinary general meeting of SIAEC held on 26 July 2004, SIAEC’s shareholders approved an amendment to the SIAEC ESOP to allow for
adjustment to the exercise prices of the existing options by the Committee administering the ESOP, in the event of the declaration of a special dividend.
Following approval by SIAEC’s shareholders of the declaration of a special dividend of $0.20 on 26 July 2004, the said Committee approved a reduction
of $0.20 in the exercise prices of the share options outstanding on 28 July 2004. The said Committee approved another $0.20 reduction in the exercise
prices of the share options outstanding on 25 July 2006 following approval by SIAEC’s shareholders of the declaration of a special dividend of $0.20 on
21 July 2006. The exercise prices refl ected here are the exercise prices after such adjustments.
(ii) Restricted Share Plan (“RSP”) and Performance Share Plan (“PSP”)
At the extraordinary general meeting of the Company held on 28 July 2005, the shareholders approved the adoption
of two new share plans, namely the RSP and the PSP, in addition to the Employee Share Option Plan.
Depending on the achievement of pre-determined targets over a two-year period for the RSP and a three-year period
for the PSP, the fi nal number of restricted shares and performance shares awarded could range between 0% and
120% of the initial grant of the restricted shares and between 0% and 150% of the initial grant of the performance
shares.
Based on meeting stated performance conditions over a two-year performance period, 50% of the RSP award will
vest. The balance will vest equally over the subsequent two years with fulfi lment of service requirements. PSP awards
will vest based on meeting stated performance conditions over a three-year performance period.
At the date of this report, the Board Compensation & Industrial Relations Committee which administers the RSP and
PSP 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 shares have been granted to controlling shareholders or their associates, or parent group employees under the
RSP and PSP.
No employee has received 5% or more of the total number of shares granted under the ESOP, RSP and PSP.
REPORT BY THE BOARD OF DIRECTORS