100 | CapitaLand Limited Annual Report 2014
Appendix
Directors’ Report
SHARE PLANS – CAPITALAND SHARE OPTION PLAN, PERFORMANCE SHARE PLAN AND RESTRICTED
SHARE PLAN
(cont’d)
(c) Awards under the CapitaLand Performance Share Plan
Under the PSP 2010, the awards granted are conditional on performance targets set based on medium-term
corporate objectives. Awards represent the right of a participant to receive fully paid shares, their equivalent cash
value or combinations thereof, free of charge, upon the Company achieving prescribed performance target(s).
During the mnancial year, the ERCC of the Company has granted awards which are conditional on targets set for
a performance period, currently prescribed to be a three-year performance period. A specimed number of shares
will only be released by the ERCC to the recipients at the end of the qualifying performance period, provided the
threshold targets are achieved. An initial number of shares (baseline award) is allocated equally according to the
following performance conditions
t
Group’s Absolute Total Shareholder Return measured as a multiple of Cost of Equity; and
t
Group’s Relative Total Shareholder Return measured as the outperformance against the MSCI Asia Pacimc
ex-Japan Real Estate Index.
The above performance measures are selected as key measurements of wealth creation for shareholders.
The mnal number of shares to be released will depend on the achievement of pre-determined targets over a
three-year performance period. No share will be released if the threshold targets are not met at the end of the
performance period. Conversely, if superior targets are met, more shares than the baseline award could be
released. For awards granted prior to 2012, the maximum is 200% of the baseline award. For awards granted in
2012 and 2013, the maximum is 175% of the baseline award. For awards granted in 2014, the maximum will be
170% of the baseline award.
Details of the movement in the awards of the Company during the year were as follows
Movements during the year
Balance as at
1 January 2014
Granted
Lapsed/
Cancelled
Balance as at
31 December 2014
Year of
Award
No. of
holders
No. of
shares
No. of
shares
No. of
shares
No. of
holders
No. of
shares
2011
55
2,764,598
–
(2,764,598)
–
–
2012
59
2,983,631
215,237
(454,224)
84
2,744,644
2013
62
3,263,132
675,064
(462,562)
85
3,475,634
2014
–
– 4,786,665
(372,979)
88
4,413,686
9,011,361 5,676,966
(4,054,363)
10,633,964
(d) Awards under the CapitaLand Restricted Share Plan
Under the RSP 2010, awards granted to eligible participants vest only after the satisfactory completion of
time-based service conditions or where the award is performance-related, after a further period of service beyond
the performance target completion date (performance-based restricted awards). In addition, the RSP 2010 also
enables grants of fully paid shares to be made to non-executive directors as part of their remuneration in respect
of their ofmce as such in lieu of cash.
During the mnancial year, the ERCC of the Company has granted awards which are conditional on targets set for
a performance period, currently prescribed to be a one-year performance period. A specimed number of shares
will only be released by the ERCC to the recipients at the end of the qualifying performance period, provided the
threshold targets are achieved. An initial number of shares (baseline award) is allocated equally according to the
following performance conditions
t
Group’s Operating Earnings Before Interest and Tax; and
t
Group’s Operating Return on Equity
^
.
^
For awards granted prior to 2014, the performance condition is Group’s Operating Return on Total Assets.
