Singapore Airlines 2015 Annual Report Download - page 142

Notes to the Financial Statements
31 March 2015
5 Sta Costs (in $ million) (continued)
Share-based compensation expense (continued)
Share-based incentive plans (continued)
Under the PSP/PSP 2014, eligible key Senior Management are required to hold a portion of the shares released to them under a
share ownership guideline which requires them to maintain a beneficial ownership stake in the Company, thus further aligning
their interests with shareholders.
The number of contingent shares granted but not released as at 31 March 2015, were 1,575,637 (2014: 1,327,116) and 650,398
(2014: 537,639) for RSP and PSP respectively. Based on the achievement factor, the actual release of the awards could range from
zero to a maximum of 2,245,393 (2014: 1,922,204) and 1,300,796 (2014: 1,075,278) fully-paid ordinary shares of the Company,
for RSP and PSP respectively.
Details and terms of the SIAEC RSP, SIAEC PSP, Tiger RSP and Tiger PSP have been disclosed in the Annual Reports of SIAEC and
Tiger Airways respectively.
Time-based RSP
In FY2010/11, the Board Compensation & Industrial Relations Committee approved a special time-based RSP awarded to
Senior Management. This one-o grant of time-based RSP shares will be issued on the vesting dates.
For retirees, 50% of the shares will vest on the retirement date and the remaining 50% one year aer the retirement date.
For employees still in service, 50% of the shares will vest in 2013 and the balance will vest equally in 2014 and 2015.
The fair value of the time-based share awards is the market price of the shares at the date of grant discounted by the expected
future dividend yield over the vesting period.
Movement of time-based share awards during the financial year
Number of Time-based Restricted Shares
Date of grant
Balance at
1.4.2014 Modification^ Vested
Balance at
31.3.2015
Time-based RSP
07.05.2010 214,477 2,852 (102,010) 115,319
The number of time-based restricted shares granted but not released as at 31 March 2015 was 115,319 (2014: 214,477).
^ Following approval by the Company’s shareholders of the declaration of a special dividend of $0.25 per share on 30 July 2014, the Board
Compensation and Industrial Relations Committee approved an increase in all restricted shares outstanding on 14 August 2014 under the RSP.
Deferred RSP/RSP 2014 Awards (“DSA”)
In FY2013/14 and FY2014/15, the Deferred RSP/RSP 2014 Awards (under the Enhanced Strategic Incentive Plan) of fully paid
ordinary shares were granted to Senior Management. The final award, which includes the Accumulated Dividend Yield (based
on the sum of SIA share dividend yields declared with ex-dividend dates occurring during the vesting period), will cli vest at
the end of three years aer the grant date, subject to meeting a three-year service-based condition and provided that individual
performance remains satisfactory.
The fair value of services received in return for shares awarded is measured by reference to the fair value of shares granted each
year. The estimate of the fair value of the services received is measured based on a Monte Carlo simulation model, which involves
projection of future outcomes using statistical distributions of key random variables including share price and volatility of returns.
140 FINANCIAL