Positioning for the Future | 171
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
22 EMPLOYEE BENEFITS
(cont’d)
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(cont’d)
CapitaLand Performance Share Plan 2010
This relates to compensation costs of the Company’s Performance Share Plan 2010 renecting the benemts
accruing to the employees over the service period to which the performance criteria relate.
Movements in the number of shares outstanding under the CapitaLand Performance Share Plan 2010 were
summarised below
2014
(‘000)
2013
(‘000)
At 1 January
9,011
9,199
Granted
5,677
^
3,565
Lapsed/Cancelled
(4,054)
(3,753)
At 31 December
10,634
9,011
^ Included 2,171,041 of shares granted under the CL substitute share awards.
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. Recipient can receive fully paid shares, their equivalent cash value or combinations thereof, at
no cost. 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.
The fair values of the shares are determined using Monte Carlo simulation method at the measurement date
which projects future share price assuming log normal distribution based on Geometric Brownian Motion
Theory. The fair values and assumptions, excluding the CL substitute share awards, are set out below
Year of Award
2014
2013
Weighted average fair value of shares and assumptions
Weighted average fair value at measurement date
$2.50
$2.49
Expected volatility based on 36 months closing share price
prior to grant date
33.09%
34.63%
MSCI Asia Pacimc ex-Japan Real Estate Index annualised
volatility based on 36 months prior to grant date
24.83%
25.18%
Share price at grant date
$2.91
$3.52
Risk-free interest rate equal to the implied yield on zero-coupon
Singapore Government bond with a term equal to the length
of vesting period
0.81%
0.38%
Expected dividend yield over 12 months volume-weighted average
share price prior to the grant date
2.53%
2.06%
Correlation of return between MSCI Asia Pacimc ex-Japan
Real Estate Index and the Company’s share price measured
over 36 months prior to the grant date
77.64%
76.40%
