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Singapore Airlines Annual Report 2007-08
120
14 Share Capital (in $ million) (continued)
Share-based incentive plans (continued)
Fair values of RSP and PSP (continued)
SATS RSP and SATS PSP (continued)
Number of Performance shares
Balance at
1.4.2007/later Balance at
Date of grant date of grant Adjustment # Cancelled 31.3.2008
SATS PSP
2.10.2006 84,360 1,291 - 85,651
27.7.2007 98,200 - - 98,200
182,560 1,291 - 183,851
# Following approval by SATS’ shareholders of the declaration of a special dividend of $0.05 per share on 26 July 2007, the Remuneration
and Human Resource Committee administering the SATS RSP and SATS PSP approved a revision in all outstanding restricted shares and
performance shares under SATS RSP and SATS PSP respectively. The number of outstanding restricted shares and performance shares
reflected here are after such adjustment.
Based on the Monte Carlo simulation model, the estimated fair value at date of grant for each share granted under the
SATS RSP ranges from $2.70 to $2.85 (2006-07: $1.88 to $2.05) and the estimated fair value at date of grant for each
share granted under the SATS PSP is $2.57 (2006-07: $1.54).
The number of contingent shares granted but not released as at 31 March 2008, were 522,676 (2007: 182,030) and
183,851 (2007: 84,360) for SATS RSP and SATS PSP respectively. Based on the achievement factor, the actual release of
the awards could range from zero to a maximum of 627,211 (2007: 218,436) and 275,776 (2007: 126,540) fully-paid
ordinary shares of SATS, for SATS RSP and SATS PSP respectively.
SIAEC RSP and SIAEC PSP
July 2007 Award July 2006 Award
RSP PSP RSP PSP
SIAEC
Expected dividend yield (%) Management’s forecast in line with dividend policy
Expected volatility (%) 19.05 – 20.43 19.16 16.82 – 22.31 17.49
Risk-free interest rate (%) 2.39 – 2.54 2.48 2.99 – 3.25 3.16
Expected term (years) 2.00 – 4.00 3.00 1.75 – 3.75 2.75
Cost of equity (%) N.A. 8.50 N.A. 8.50
Share price at date of grant ($) 4.64 4.64 3.96 3.96
The details of the shares awarded under SIAEC RSP and SIAEC PSP during the year since commencement of the plans are
as follows:
Number of Restricted shares
Balance at
1.4.2007/later Balance at
Date of grant date of grant Cancelled 31.3.2008
SIAEC RSP
3.7.2006 203,200 (8,300) 194,900
2.7.2007 339,600 (1,300) 338,300
542,800 (9,600) 533,200
NOTES TO THE FINANCIAL STATEMENTS
31 March 2008