Singapore Airlines 2008 Annual Report Download - page 119

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Singapore Airlines Annual Report 2007-08
117
14 Share Capital (in $ million) (continued)
Share-based incentive plans
The RSP and PSP are share-based incentive plans for senior management staff, which were approved by the shareholders
of the Company on 28 July 2005. Similar share-based incentive plans were 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
of the Company, conditional on Company, conditional on performance
position and individual performance targets set at the start of a three-year
targets set at the start of a two-year overlapping performance period based on
performance period based on stretched long-term corporate objectives.
medium-term Group and Company
objectives.
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
period, 50% of award will vest. Balance three-year performance period.
will vest equally over the subsequent
two years with fulfilment 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
NOTES TO THE FINANCIAL STATEMENTS
31 March 2008