Positioning for the Future | 173
Appendix
Notes to the Financial Statements
Year ended 31 December 2014
22 EMPLOYEE BENEFITS
(cont’d)
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(cont’d)
CapitaLand Restricted Share Plan 2010 – Equity-settled/Cash-settled
(cont’d)
As at 31 December 2014, the number of shares comprised in awards granted under the CapitaLand Restricted
Share Plan is as follows
2014
2013
Equity-
settled
(‘000)
Cash-
settled
(‘000)
Total
(‘000)
Equity-
settled
(‘000)
Cash-
settled
(‘000)
Total
(‘000)
Final number of shares
has not been determined
(baseline award)
#
9,875
978
10,853
6,730
312
7,042
Final number of shares
determined but not released
6,139
231
6,370
6,121
351
6,472
16,014
1,209
17,223
12,851
663
13,514
#
The mnal number of shares released could range from 0% to 150% of the baseline award.
The mnal number of shares to be released will depend on the achievement of pre-determined targets at the
end of a one-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 delivered up to a maximum of 150% of the baseline award. The shares have a vesting period of two
to three years. Recipient can receive fully paid shares, their equivalent cash value or combinations thereof,
at no cost. From 2014, an additional number of shares of a total value equal to the value of the accumulated
dividends which are declared during each of the vesting periods and deemed forgone due to the vesting
mechanism of the CapitaLand Restricted Share Plan 2010, will also be released upon the mnal vesting.
Cash-settled awards of shares are measured at their current fair values at each balance sheet date.
The fair values of the shares granted to employees 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
$2.76
$3.40
Expected volatility based on 36 months closing share
price prior to grant date
33.09%
34.63%
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
0.30% to 0.81% 0.18% to 0.38%
Expected dividend yield over 12 months volume-weighted
average share price prior to the grant date
2.53%
2.06%
The fair value of the shares awarded to non-executive directors in 2014 was $3.11 (2013 $3.75) which was
the volume-weighted average price of a CapitaLand share on the SGX-ST over the 14 trading days from
(and including) the ex-dividend date following the date of CapitaLand’s Annual General Meeting.
From 2012, cash-settled award plan for non-managerial grade employees in Singapore, Malaysia and Japan
has been replaced by a Restricted Cash Plan (RCP). Under RCP, a cash bonus is distributed to eligible
employees at the end of each mnancial year based on the Group’s mnancial performance and achievement
of performance targets, as well as individual performance.
