Singapore Airlines 2010 Annual Report Download - page 38

SINGAPORE AIRLINES
036
corporate governance report
For the period 1 April 2009 to 31 March 2010
The SIA Performance Share Plan (PSP)
The PSP is targeted at a select group of key senior management who shoulder the responsibility for the Company’s performance
and who are able to drive the growth of the Company through innovation, creativity and superior performance. Awards
under the PSP are performance-based, with stretched performance targets based on criteria such as absolute and relative total
shareholders’ return to be achieved over a three-year performance period.
The SIA Restricted Share Plan (RSP)
The RSP is targeted at a broader base of senior executives and enhances the Company’s ability to recruit and retain talented senior
executives as well as to reward for Company and individual performance. Consistent with the Company’s philosophy on adopting
a pay-for-performance principle, awards under the RSP are contingent on the achievement of performance targets like EBITDAR
margin and staff productivity over a two-year performance period. To encourage participants to continue serving the Company
beyond the performance period, an extended vesting period is imposed beyond the performance target completion date.
The total number of ordinary shares which may be issued pursuant to awards granted under the RSP and PSP, when added to
the number of new shares issued and issuable in respect of all awards granted under the RSP and PSP, and all options under
the ESOP, shall not exceed 13% of the issued ordinary share capital of the Company. In addition the maximum number of
new Shares that can be issued pursuant to awards granted under the RSP and PSP in the period between the current Annual
General Meeting (AGM) to the next AGM shall not exceed 1.5% of the total number of issued ordinary shares in the capital of
the Company.
Details of the Company’s PSP, RSP and ESOP can be found on pages 72 to 75 of the Report by the Board of Directors.
Directors’ Fees
The Directors’ fees paid in financial year 2009-10 amounted to S$1,207,000 [financial year 2008-09: S$1,500,000] and
were based on the following rates:
Rates (S$)
Board Retainers Board Member 80,000
Chairman 160,000
Committee Retainers Chairman of Executive Committee and Audit Committee 50,000
Chairman of other Board Committees, 35,000
Member of Executive Committee and Audit Committee
Member of other Board Committees 20,000
Attendance Fees Home – City 5,000
In – Region 10,000
Out – Region 20,000
Teleconference – normal hours 1,000
Teleconference – odd hours 2,000
In response to the potential effects of the global financial crisis, Directors had accepted a 20% reduction in Directors’ fees
for financial year 2009-10 in tandem with the CEO’s pay cut of 20%, with effect from July 2009. The table above sets out
the rates prior to the 20% reduction.