172 | CapitaLand Limited Annual Report 2014
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
22 EMPLOYEE BENEFITS
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CL Substitute Performance Share Awards
The Company granted 2,171,041 shares under the CL substitute share awards to holders of CMA’s
Performance Share Plan to substitute the balance CMA share awards for Year 2012, 2013 and 2014 which
were not settled in cash.
The fair values of the CL substitute 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 of the CL substitute share awards for Year 2012
to 2014 are set out below
Weighted average fair value of shares and assumptions
Weighted average fair value at measurement date
$2.64 to $3.23
Expected volatility based on 36 months closing share price prior to grant date
33.79%
MSCI Asia Pacimc ex-Japan Real Estate Index annualised volatility based on
36 months prior to grant date
25.08%
Share price at grant date
$3.22
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
0.33% to 0.53%
Expected dividend yield over 12 months volumed-weighted average share price
prior to the grant date
2.53%
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
78.83%
CapitaLand Restricted Share Plan 2010 – Equity-settled/Cash-settled
This relates to compensation costs of the Company’s Restricted 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 Restricted Share Plan 2010 were
summarised below
2014
(‘000)
2013
(‘000)
At 1 January
13,514
12,314
Granted
12,787
^
8,919
Released
@
(6,062)
(6,337)
Lapsed/Cancelled
(3,016)
(1,382)
At 31 December
17,223
13,514
^
Included 3,659,684 shares granted under the CL substitute share awards, of which 637,198 are to be cash-settled.
@
The number of shares released during the year was 6,062,023 (2013 6,336,694), of which 346,750 (2013 487,829) were
cash-settled.
