Singapore Airlines 2012 Annual Report Download - page 48

046 SINGAPORE AIRLINES
Corporate Governance Report
For the period 1 April 2011 to 31 March 2012
No employee of the Group who is an immediate family member of a Director was paid a remuneration that exceeded $150,000
during the financial year ended 31 March 2012.
Performance
and Restricted Time-based
Shares Restricted
granted during Shares granted
the year2 during the year3
Fee Salary Bonuses1 Benefits Total Number Number
Senior Management % % % % %
Between $1,500,000 to $1,750,000
Ng Chin Hwee - 30 65 5 100 22,000 PSP -
20,000 RSP
Between $1,000,000 to $1,250,000
Mak Swee Wah - 43 50 7 100 22,000 PSP -
20,000 RSP
Additional information on Economic Value Added (EVA)-based incentive plan (EBIP):
A portion of the annual performance-related bonus of senior management is tied to the EVA produced by the Group in the
year. Under the plan, one-third of the accumulated EBIP bonus, comprising the EBIP bonus declared in the financial year and
the balance of such bonus brought forward from preceding years, is paid out in cash each year. The remaining two-thirds are
carried forward in the individual executive’s EBIP account. Amounts in the EBIP account are at risk because negative EVA will
result in a retraction of EBIP bonus earned in preceding years. This mechanism encourages Management to work for sustainable
profitability and to adopt strategies that are aligned with the long-term interests of the Company.
The rules of the EBIP are subject to review by the Board Compensation and Industrial Relations Committee, which has the
discretion, under authority of the Board, to amend the rules where appropriate and relevant to the business conditions.
Accountability (Principle 10)
The Board, through its announcements of quarterly and full-year results, aims to provide shareholders with a balanced and
understandable assessment of the Company’s performance and prospects. Management provides the Board with monthly
management accounts for the Board’s review.
The Company has clear policies and guidelines for dealings in securities by Directors and employees, as recommended by the SGX-
ST’s Best Practices Guide. The Company imposes a trading embargo on its Directors and employees from trading in its securities for
the period of two weeks prior to the announcement of quarterly results; and a period of one month prior to the announcement of
year-end results. In addition, Directors and employees are cautioned to observe the insider trading laws at all times.
1 Includes฀Economic฀Value฀Added฀(EVA)-based฀incentive฀plan฀(EBIP)฀payment฀and฀prot-sharing฀bonus.฀The฀amount฀paid฀in฀the฀reporting฀year฀under฀
EBIP฀is฀a฀percentage฀of฀the฀individual’s฀EVA฀Bank.฀See฀below฀for฀additional฀information฀on฀the฀EBIP.
2 Shares awarded under the PSP and RSP are subject to performance targets and other terms and conditions being met under the respective share plans.
3 Please refer to Note 5 of the Notes to Financial Statements on the details and terms of the time-based restricted shares.
4 The above table reflects the remuneration of the employees who hold the rank of Executive Vice President and above, who are the top key
executives of the Company.