Singapore Airlines 2010 Annual Report Download - page 37
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ANNUAL REPORT 2009/10
035
Remuneration Matters (Principles 7, 8 and 9)
Remuneration Mix
In addition to base salary and benefits, SIA has in place short-term and long-term incentive plans to motivate and reward
employees in striving to meet the targets set under these plans.
Short-term incentives
Short-term incentives generally take the form of an annual profit-sharing bonus. Payment of the variable bonus is based on
employees achieving the target levels in the following:
(i) SIA Group’s Return on Shareholders’ Fund
(ii) SIA Company’s Operating Profit Margin
(iii) SIA Company’s Passenger Load Factor
Long-term incentives
The Company has put in place share-based remuneration programmes allowing employees to share in its growth and
success. These plans comprise the Performance Share Plan (PSP), Restricted Share Plan (RSP) and Employee Share Option
Plan (ESOP).
The ESOP was introduced in 2000 with the objective of promoting unity and team spirit through a sense of share ownership.
The last grant under the ESOP was made in July 2008. The Company will continue to review options for compensation
plans, which will incentivise employees in the longer term.
The PSP and RSP, which were approved by shareholders at the Extraordinary General Meeting of the Company held on 28
July 2005, were introduced in 2006 with a view to further strengthen the Company’s competitiveness in attracting and
retaining talented key senior management and senior executives. The PSP and RSP aim to more directly align the interests
of key senior management and senior executives with the interests of Shareholders, to improve performance and achieve
sustainable growth for the Company in the changing business environment, and to foster a greater ownership culture
amongst key senior management and senior executives.
These PSP and RSP contemplate the award of fully paid Shares, when and after pre-determined performance and/or service
conditions are met.
The selection of a participant and the number of shares which he would be awarded under the PSP or RSP will be
determined at the absolute discretion of the BCIRC which will take into account criteria such as his rank, job performance,
potential for future development and his contribution to the success and development of the Company. The BCIRC has
the discretion to review and amend performance conditions and target(s) where it feels appropriate and as relevant to the
business conditions. Non-executive Directors of the Group are not eligible to participate in the PSP and RSP.