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| c. |
Restricted Stock Plan (cont'd) |
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| i. |
Sembcorp Industries Ltd Restricted Stocks
The details of restricted stocks of Sembcorp Industries Ltd awarded during the year since commencement of the Restricted Stock Plan (aggregate) are as follows: |
Restricted
stocks
participants |
Conditional
restricted
stocks
awarded
during
the year |
Aggregate
original
conditional
restricted
stocks
awarded |
Aggregate
additional
conditional
restricted stocks
awarded
due to
modification |
Aggregate
conditional
restricted
stocks
released |
Aggregate
conditional
restricted
stocks
lapsed |
Aggregate
conditional
restricted
stocks
outstanding |
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|
2009 |
|
|
|
|
|
|
Directors of the Company: |
|
|
|
|
|
|
Peter Seah Lim Huat |
23,500 |
70,500 |
484 |
(5,197) |
(8,394) |
57,393 |
Tang Kin Fei |
126,000 |
444,000 |
6,785 |
(88,695) |
(45,009) |
338,138 |
Goh Geok Ling |
13,700 |
41,100 |
282 |
(3,030) |
(4,894) |
33,458 |
Richard Hale, OBE |
17,000 |
51,000 |
350 |
(3,760) |
(6,072) |
41,518 |
Evert Henkes |
7,000 |
21,000 |
144 |
(1,548) |
(2,500) |
17,096 |
Lee Suet Fern |
13,700 |
41,100 |
282 |
(3,030) |
(4,894) |
33,458 |
Bobby Chin Yoke Choong |
11,000 |
11,000 |
— |
— |
— |
11,000 |
Other executives
of the Group |
2,012,500 |
6,740,600 |
93,425 |
(1,082,459) |
(1,503,517) |
4,506,785 |
|
2,224,400 |
7,420,300 |
101,752 |
(1,187,719) |
(1,575,280) |
5,038,846 |
|
|
|
|
|
|
|
2008 |
|
|
|
|
|
|
Directors of the Company: |
|
|
|
|
|
|
Peter Seah Lim Huat |
23,500 |
47,000 |
484 |
— |
— |
47,484 |
Tang Kin Fei |
126,000 |
318,000 |
6,785 |
(30,416) |
— |
315,426 |
Goh Geok Ling |
13,700 |
27,400 |
282 |
— |
— |
27,682 |
Richard Hale, OBE |
17,000 |
34,000 |
350 |
— |
— |
34,350 |
Evert Henkes |
7,000 |
14,000 |
144 |
— |
— |
14,144 |
Lee Suet Fern |
13,700 |
27,400 |
282 |
— |
— |
27,682 |
Other executives
of the Group |
1,977,300 |
4,728,100 |
93,425 |
(409,185) |
(508,255) |
4,162,821 |
|
2,178,200 |
5,195,900 |
101,752 |
(439,601) |
(508,255) |
4,629,589 |
| |
With the Committee’s approval on the achievement factor for the achievement of the performance targets for
the performance period 2007 to 2008, a total of 392,617 restricted stocks were released. For awards in relation
to the performance period 2006 to 2007, a total of 355,501 (2008: 439,601) restricted stocks were released in
2009. The restricted stocks were released via the issuance of treasury shares.
In 2008, additional 279,793 restricted stocks were awarded for the over-achievement of the performance
targets for the performance period 2006 to 2007.
The total number of restricted stocks outstanding, including award(s) achieved but not released, as at end 2009,
was 5,038,846 (2008: 4,629,589). Of this, the total number of restricted stocks in awards granted conditionally
and representing 100% of targets to be achieved, but not released was 4,077,962 (2008: 3,900,597). Based on
the multiplying factor, the actual release of the conditional awards could range from zero to a maximum of
6,116,943 (2008: 5,491,236) restricted stocks.
Sembcorp Challenge Bonus
With the Committee’s approval on the achievement factor for the achievement of the performance targets for
the performance period 2007 to 2008, a total of S$584,000, equivalent to 252,989 notional restricted stocks,
were paid.
A total of 600,000 (2008: 600,000) notional restricted stocks of Sembcorp Industries Ltd’s shares were awarded
in 2009 for the Sembcorp Challenge Bonus.
The total number of notional restricted stocks in awards for the Sembcorp Challenge Bonus granted
conditionally and representing 100% of targets to be achieved, but not released as at end 2009, was 1,200,000
(2008: 1,157,248). Based on the multiplying factor, the number of notional restricted stocks to be converted
into the funding pool could range from zero to a maximum of 1,800,000 (2008: 1,624,422). |
| ii. |
Restricted stocks of a listed subsidiary
The details of restricted stocks of Sembcorp Marine Ltd awarded during the year since commencement of the Restricted Stock Plan (aggregate) are as follows: |
Restricted
stocks
participants |
Conditional
restricted
stocks
awarded
during
the year |
Aggregate
original
conditional
restricted
stocks
awarded |
Aggregate
additional
conditional
restricted
stocks
awarded
due to
bonus issue |
Aggregate
conditional
restricted
stocks
released |
Aggregate
conditional
restricted
stocks
lapsed |
Aggregate
conditional
restricted
stocks
outstanding |
|
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|
|
|
|
2009 |
|
|
|
|
|
|
Directors of the Company: |
|
|
|
|
|
|
Tang Kin Fei |
17,000 |
42,500 |
5,400 |
(8,190) |
— |
45,380 |
Goh Geok Ling |
29,000 |
73,000 |
8,800 |
(13,347) |
— |
77,693 |
Richard Hale, OBE |
22,000 |
22,000 |
— |
— |
— |
22,000 |
Other participants |
3,358,330 |
11,123,170 |
1,629,952 |
(3,372,147) |
(764,302) |
10,261,889 |
|
3,426,330 |
11,260,670 |
1,644,152 |
(3,393,684) |
(764,302) |
10,406,962 |
|
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|
|
|
|
2008 |
|
|
|
|
|
|
Directors of the Company: |
|
|
|
|
|
|
Tang Kin Fei |
12,000 |
25,500 |
5,400 |
— |
— |
30,900 |
Goh Geok Ling |
22,000 |
44,000 |
8,800 |
— |
— |
52,800 |
Other participants |
3,539,000 |
7,764,840 |
1,629,952 |
(708,128) |
(485,406) |
8,679,151 |
|
3,573,000 |
7,834,340 |
1,644,152 |
(708,128) |
(485,406) |
8,762,851 |
| |
With the Sembcorp Marine Ltd’s committee’s approval on the achievement factor for the achievement of the
performance targets for the performance period 2007 to 2008, a total of 1,956,117 Sembcorp Marine Ltd’s
restricted stocks were released via the issuance of treasury shares. For awards in relation to the performance
period 2006 to 2007, a total of 729,439 (2008: 708,128) restricted stocks were released in 2009.
In 2009, additional 1,182,233 (2008: 477,893) restricted stocks were awarded for the over-achievement of the
performance targets for the performance period 2007 to 2008.
The total number of Sembcorp Marine Ltd’s restricted stocks outstanding, including award(s) achieved but not
released, as at end of 2009, was 10,406,962 (2008: 8,762,851). Of this, the total number of restricted stocks in
awards granted conditionally and representing 100% of targets to be achieved, but not released was 6,709,730
(2008: 7,422,586). Based on the multiplying factor, the actual release of the awards could range from zero to a
maximum of 10,064,595 (2008: 10,339,522) restricted stocks.
Challenge Bonus of a listed subsidiary
With the committee’s approval on the achievement factor for the achievement of the performance targets
for the performance period 2007 to 2008, a total of S$1,679,000, equivalent to 1,203,602 notional restricted
stocks were paid.
A total of 1,130,050 (2008: 957,400) notional restricted stocks of Sembcorp Marine Ltd’s shares were awarded
in 2009 for the Sembcorp Marine Challenge Bonus.
The total number of notional restricted stocks in awards for the Sembcorp Marine Challenge Bonus granted
conditionally and representing 100% of targets to be achieved, but not released as at end 2009, was 1,928,700
(2008: 1,866,248). Based on the multiplying factor, the number of notional restricted stocks to be converted
into the funding pool could range from zero to a maximum of 2,893,050 (2008: 2,606,642). |
Fair value of restricted stocks
The fair values of the restricted stocks are estimated using a Monte Carlo simulation methodology at the grant
dates.
The fair values of restricted stocks granted during the year are as follows:
|
Fair value
of Sembcorp
Industries Ltd
restricted
stocks granted
on April 9, 2009 |
Fair value
of Sembcorp
Industries Ltd
restricted
stocks granted
on April 7, 2008
and
August 1, 2008 |
Fair value
of Sembcorp
Marine Ltd
restricted
stocks granted
on April 13, 2009 |
Fair value
of Sembcorp
Marine Ltd
restricted
stocks granted
on April 7, 2008 |
|
|
|
|
|
Fair value at measurement date |
S$2.28 |
S$3.07 |
S$1.98 |
S$3.06 |
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|
|
|
Assumptions under the Monte Carlo model |
|
|
|
|
Share price |
S$2.67 |
S$4.26 |
S$2.26 |
S$3.77 |
Expected volatility: |
|
|
|
|
Sembcorp Industries Ltd /
Sembcorp Marine Ltd |
39.9% |
32.4% |
50.3% |
30.9% |
Straits Times Index (“STI”) |
NA |
15.9% |
NA |
15.9% |
Correlation with STI |
NA |
69.7% |
NA |
47.6% |
Risk-free interest rate |
0.4%–1.0% |
0.9%–1.3% |
0.4%–1.0% |
0.9%–1.3% |
Expected dividend |
5.8% |
4.7% |
5.3% |
5.0% |
The expected volatility is based on the historical volatility over the most recent period that is close to the expected
life of the restricted stocks.
During the year, the Group charged S$18,200,000 (2008: S$14,293,000) to the income statement based on the fair
value of restricted stocks at the grant date being expensed over the vesting period.
Fair value of Sembcorp Challenge Bonus
During the year, the Group charged S$4,491,000 (2008: S$7,820,000) to the income statement based on the market
values of the shares at the balance sheet date. The fair value of the compensation cost is based on the notional
number of restricted stocks awarded for Sembcorp Challenge Bonus and the market price at the vesting date. |
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