Singapore Airlines 2016 Annual Report Download - page 71

selected peer group of leading full service carriers.
The above performance measures are selected as key
measurements of wealth creation for shareholders.
The final award will cli vest aer completion of the
performance period.
The Group has attained an achievement factor which
is reflective of outperforming / fully meeting / partially
meeting / not meeting the pre-determined target
performance level for PSP awards granted based on
the performance period from FY2013/14 to FY2015/16.
ii. The SIA Restricted Share Plan 2014 (“RSP 2014”)
The RSP 2014 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 Group, Company and individual
performance. To retain key executives, an extended
vesting period of a further two years is imposed
beyond the initial two-year performance period.
Under the RSP 2014, an initial award is made in the form
of rights to shares, provided performance conditions are
met in future. Annual grants are made based on position
level and individual performance of the key executives
selected to participate in the RSP 2014. Final awards may
vary between 0-150% of the initial award, depending
on the extent to which targets based on Group and
Company EBITDAR Margin and Group and Company
Sta Productivity are met. The performance measures
are selected as they are key drivers of shareholder
value and are aligned to the Group and the Company’s
business objectives. The final award is subject to
extended vesting, with 50% of the final award paid out at
the end of the two-year performance period, and the rest
paid out equally over the next two years.
The Group has attained an achievement factor which
is reflective of outperforming / fully meeting / partially
meeting / not meeting the pre-determined target
performance level for RSP awards granted based on
the performance period from FY2014/15 to FY2015/16.
iii. The SIA Deferred Share Award (“DSA”)
As part of the SIP, the DSA is a share award established
with the objective of rewarding, motivating and
retaining Senior Management, who are responsible
for strategic initiatives. The DSA is granted as a
contingent share award under the RSP 2014. 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.
Under the PSP 2014 and RSP 2014, the total number
of shares which may be delivered (whether in the
form of shares or cash in lieu of shares) is subject
to a maximum limit of 5% of the total number of
issued shares (excluding treasury shares). In addition,
the total number of shares under awards to be
granted under the PSP 2014 and RSP 2014 from the
forthcoming Annual General Meeting to the next
Annual General Meeting (the “Relevant Year”) shall
not exceed 0.5% of the total number of issued shares
(excluding treasury shares) from time to time (the
“Yearly Limit”). However, if the Yearly Limit is not
fully utilised during the Relevant Year, any unutilised
portion of the Yearly Limit can be used for grants of
awards in subsequent years.
The SIA Employee Share Option Plan (“ESOP”) expired
in 2010.
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.
Details of the PSP 2014, RSP 2014, DSA and ESOP
can be found on pages 87 to 91 of the Directors’
Statement.
In the event of a misstatement of financial results or of
misconduct resulting in financial loss to the Company
as deemed by the BCIRC, the BCIRC may, in its absolute
discretion, reclaim unvested incentive components of
remuneration from Senior Management.
Annual Report FY2015/16 69