NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D. EMPLOYEE BENEFITS The Group uses the following programs to reward and recognise employees and key executives, including key management personnel. • Economic Value Added (EVA)-based Incentive Scheme • Defined contribution plans • Post-employment benefits • Share plans The Group believes that these programs reinforce the value of ownership and incentivise and drive performance both individually and collectively to maximise returns to the shareholders. D1 Economic Value Added (EVA)-based Incentive Scheme D3 Post-employment benefits D2 Personnel expenses D4 Share-based payment arrangements D1 Economic Value Added (EVA)-based Incentive Scheme The Group adopts an incentive compensation plan, which is tied to the creation of EVA, as well as attainment of individual and Group performance goals for its key executives. An EVA bank is used to hold incentive compensation credited in any year. Typically a portion of EVA-based bonus declared in the financial year is paid out in cash each year, with the balance being deferred for payment in the following years. Estimates and judgement: EVA-based Incentive Scheme (EBIS) Estimates of the Group’s obligations arising from the EBIS at the reporting date may be affected by future events, which cannot be predicted with any certainty. The assumptions and estimates are made based on management’s knowledge and experience and may vary from actual experience so that the actual liability may vary considerably from the best estimates. Negative EVA will result in a clawback of EVA bonus accumulated in previous years. D2 Personnel expenses Group 2022 $’000 2021 $’000 Wages and salaries* 2,139,466 1,670,620 Contributions to defined contribution plans 192,220 178,287 Defined benefit plan (income)/expenses (44,603) 34,836 Share-based payments 24,091 21,122 Other personnel expenses 299,700 231,700 2,610,874 2,136,565 * $2,200,000 (2021: $204,698,000) of COVID-19 related government grants were recognised during the year, including amount received under the Jobs Support Scheme and various government grants received by the Group’s subsidiaries in the countries they operate in. These amounts were deducted in wages and salaries. CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT 217
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