Singapore Airlines 2016 Annual Report Download - page 144

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Notes to the Financial Statements
31 March 2016
5 Sta Costs (in $ million) (continued)
Share-based compensation arrangements (continued)
(b) Share-based incentive plans (equity-settled) (continued)
The RSP/RSP 2014 awards fully-paid ordinary shares of the Company, conditional on position and individual performance targets set at
the start of a two-year performance period based on medium-term Group and Company objectives.
The PSP/PSP 2014 awards fully-paid ordinary shares of the Company, conditional on performance targets set at the start of a three-year
overlapping performance period based on stretched long-term corporate objectives.
Key terms and conditions related to the grants under these programmes are as follows:
Plans Vesting Conditions Performance conditions^ Payout
Senior Executive Share
Option Scheme@
•25%perannumoftotalordinaryshares
subject to the options.
None 100%
Employee Share Option
Scheme@
•Twoyearsservicefromgrantdate. None 100%
RSP/RSP 2014
•Basedonmeetingstatedperformance
conditions over a two-year performance
period, 50% of award vests.
•Balancevestsequallyoverthesubsequenttwo
years with fulfilment of service requirements.
At both Company and Group level
•EBITDAR# Margin
•ValueAddedper$Employment
Cost
0% - 150%*
PSP/PSP 2014
•Basedonmeetingstatedperformance
conditions over a three-year performance
period.
•AbsoluteTotalShareholderReturn
("TSR") outperform Cost of Equity
("COE")
•RelativeTSRagainstselected
airline peer index companies
0% - 200%*
Time-based RSP
•Foremployeesstillinservice,50%ofthe
shares vest in 2013 and the balance vests
equally in 2014 and 2015.
•Forretirees,50%ofthesharesvestonthe
retirement date and the remaining 50% one
year after the retirement date.
None 100%
Deferred share award
•Awardscliffvestattheendofthreeyearsafter
the grant date, subject to meeting a three-year
service-based condition and provided that
individual performance remains satisfactory.
None 100%
@ The share options have contractual life of no longer than 10 years from grant date.
# EBITDAR denotes Earnings before Interest, Taxes, Depreciation, Amortisation and Rentals on leased aircra.
* The payout depends on the achievement of pre-set performance targets over the performance period.
^ For non-market conditions, achievement factors are determined based on inputs from the Board Compensation & Industrial Relations Committee for the
purpose of accrual for the share-based incentive plans until the achievement of the targets can be accurately ascertained.
Singapore Airlines142
FINANCIAL