CapitaLand Limited - Annual Report 2015 - page 33

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CapitaLand Limited
Annual Report 2015
Overview Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
C. Share-based Components:
Share awards were granted in FY 2015 pursuant to the CapitaLand Performance Share Plan 2010 (PSP) and the
CapitaLand Restricted Share Plan 2010 (RSP) (together, the Share Plans), approved and adopted by the shareholders of
the Company at the Extraordinary General Meeting held on 16 April 2010.
For FY 2015, the total number of shares in the awards granted under the Share Plans did not exceed the yearly limit of
1% of the total number of issued shares (excluding treasury shares). The obligation to deliver the shares is expected to
be satisfied out of treasury shares.
Details of the Share Plans as well as awards granted under the Share Plans are given in the Share Plans section of the
Directors’ Statement on pages 99 to 103 and the Equity Compensation Benefits section of the Notes to the FY 2015
Financial Statements on pages 171 to 175.
CapitaLand Performance Share Plan 2010
During FY 2015, the ERCC granted awards which are conditional on targets set for a performance period, currently
prescribed to be a three-year performance period. A specified number of shares will only be released to the recipient at
the end of the qualifying performance period, provided that minimally the threshold targets are achieved. An initial number
of shares (baseline award) is allocated according to the following performance conditions:
UÊÊ L܏ÕÌiÊ/œÌ>Ê- >Ài œ`iÀÊ,iÌÕÀ˜ÊœvÊÌ iÊ ÀœÕ«Ê“i>ÃÕÀi`Ê>ÃÊ>ʓՏ̈«iʜvÊ œÃÌʜvÊ µÕˆÌÞÆÊ
UÊÊ ,i>̈ÛiÊ/œÌ>Ê- >Ài œ`iÀÊ,iÌÕÀ˜ÊœvÊÌ iÊ ÀœÕ«Ê“i>ÃÕÀi`Ê>ÃÊ«iÀVi˜ÌˆiÊÀ>˜Žˆ˜}ʜvÊÌ iÊ ÀœÕ«½ÃÊ/œÌ>Ê- >Ài œ`iÀÊ
Return against those of a peer group comprising public-listed companies of comparable scale, scope and business
mix in Singapore, Hong Kong and China; and
UÊÊ ,iÌÕÀ˜Êœ˜Ê µÕˆÌÞʜvÊÌ iÊ ÀœÕ«Ê>ÌÊÌ iÊi˜`ʜvÊÌ iÊ«iÀvœÀ“>˜ViÊ«iÀˆœ`°
The above performance measures have been selected as key measurements of wealth creation for shareholders.
The final number of shares to be released will depend on the achievement of pre-determined targets over the three-year
performance period. No share will be released if the threshold targets are not met at the end of the performance period.
On the other hand, if superior targets are met, more shares than the baseline award can be released. For awards granted
in 2012 and 2013, the maximum is 175% of the baseline award. For awards granted in 2014 and 2015, the maximum is
170% and 200% of the respective year’s baseline awards. Recipients will receive fully paid shares at no cost.
Based on the ERCC’s assessment that the performance achieved by the Group has not met the pre-determined
performance targets for share awards based on the performance period from the financial year ended 31 December
2013 to FY 2015, no share has been released.
CapitaLand Restricted Share Plan 2010
During FY 2015, the ERCC granted awards which are conditional on targets set for a performance period, currently
prescribed to be a one-year performance period. A specified number of shares will only be released to the recipients at
the end of the qualifying performance period, provided that minimally the threshold targets are achieved. An initial number
of shares (baseline award) is allocated according to the following performance conditions:
UÊ "«iÀ>̈˜}Ê >À˜ˆ˜}ÃÊ ivœÀiÊ ˜ÌiÀiÃÌÊ>˜`Ê/>ÝʜvÊÌ iÊ ÀœÕ«ÆÊ>˜`
UÊ "«iÀ>̈˜}Ê,iÌÕÀ˜Êœ˜Ê µÕˆÌÞʜvÊÌ iÊ ÀœÕ«°
The above performance measures have been selected as they are the key drivers of business performance and are aligned
to shareholder value. The final number of shares to be released will depend on the achievement of pre-determined targets
at the end of the one-year performance period and the release will be over a vesting period of three years. No share will be
released if the threshold targets are not met at the end of the performance period. On the other hand, if superior targets are
met, more shares than the baseline award can be delivered up to a maximum of 150% of the baseline award. Recipients
can receive fully paid shares or, by exception, their equivalent cash value or combinations thereof, at no cost.
Based on the ERCC’s assessment that the performance achieved by the Group has met the pre-determined performance
targets for share awards based on the performance period FY 2015, the resulting number of shares released has been
adjusted accordingly to reflect the performance level.