174 | 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 Restricted Share Awards
The Company granted 3,659,684 shares under the CL substitute share awards to holders of CMA Restricted
Share Plan to substitute the balance CMA share awards which were not settled in cash for Year 2014.
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 2014
are set out below
Year of Award
2014
Weighted average fair value of shares and assumptions
Weighted average fair value at measurement date
$3.09
Expected volatility based on 36 months closing share price prior to grant date
33.79%
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 volume-weighted average share price
prior to the grant date
2.53%
Share Plans of a Subsidiary
CapitaMalls Asia Limited (CMA)
CMA was delisted from the Ofmcial List of the Singapore Exchange Securities Trading Limited and
The Stock Exchange of Hong Kong Limited on 22 July 2014 following the completion of the voluntary cash
offer and subsequent compulsory acquisition of shares in CMA by Sound Investment Holdings Pte Ltd,
a wholly-owned subsidiary of the Company.
Subsequent to the delisting, all CMA share plans were cancelled, resulting in an accelerated recognition of
share-based payments. The outstanding shares under the CMA share plans were settled as follows
(i) 3,730,730 shares under the CMA Performance Share Plan had been released in the form of cash in
accordance with the rules of the CMA Performance Share Plan while the balance outstanding awards
of 2,717,184 were substituted by contingent awards under CapitaLand Performance Share Plan 2010;
and
(ii) 11,821,148 shares under the CMA Restricted Stock Plan had been released in the form of cash in
accordance with the rules of the CMA Restricted Stock Plan while the balance outstanding awards of
4,551,886 were substituted by contingent awards under CapitaLand Restricted Share Plan 2010.
