Singapore Airlines 2009 Annual Report Download - page 76

74
5 Options on Shares in the Company (continued)
(i) Employee Share Option Plan (continued)
(b) SIA Engineering Company Limited (“SIAEC”)
The SIA Engineering Company Limited Employee Share Option Plan (“SIAEC ESOP”), which
comprises the Senior Executive Share Option Scheme and the Employee Share Option Scheme for
senior executives and all other employees respectively, was approved on 9 February 2000.
The basis upon which an option may be exercised is identical to that of the Plan implemented by
the 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 SIAEC ESOP in respect of 13,592,000 unissued shares in
SIAEC at an exercise price of $3.74 per share.
At the end of the fi nancial year, options to take up 61,260,663 unissued shares in SIAEC
were outstanding:
Number of options to subscribe for unissued ordinary shares
Balance at
Date 1.4.2008 / Balance at Exercise
of grant date of grant Cancelled Exercised 31.3.2009 price* Exercisable period
28.3.2000 1,469,500 (90,400) (262,100) 1,117,000 $1.65 28.3.2001 - 27.3.2010
3.7.2000 1,487,013 (63,200) (218,600) 1,205,213 $1.55 3.7.2001 - 2.7.2010
2.7.2001 719,600 (50,800) (152,700) 516,100 $1.01 2.7.2002 - 1.7.2011
1.7.2002 4,194,350 (90,400) (407,150) 3,696,800 $1.98 1.7.2003 - 30.6.2012
1.7.2003 1,192,275 (11,600) (231,525) 949,150 $1.35 1.7.2004 - 30.6.2013
1.7.2004 4,289,225 (17,200) (474,550) 3,797,475 $1.69 1.7.2005 - 30.6.2014
1.7.2005 8,550,875 (17,200) (876,150) 7,657,525 $2.25 1.7.2006 - 30.6.2015
3.7.2006 14,782,550 (112,000) (964,100) 13,706,450 $3.44 3.7.2007 - 2.7.2016
2.7.2007 15,319,400 (220,800) (1,250) 15,097,350 $4.67 2.7.2008 - 1.7.2017
1.7.2008 13,592,000 (74,400) - 13,517,600 $3.74 1.7.2010 - 30.6.2018
65,596,788 (748,000) (3,588,125) 61,260,663
* 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 Compensation and
Human Resource Committee administering the SIAEC 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.
REPORT BY THE BOARD OF DIRECTORS