NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D. EMPLOYEE BENEFITS The Group uses the following programmes 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 programmes 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. 213 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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