NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D4 Share-based payment arrangements PSP2020 (PSP) The PSP is established with the objective of motivating Senior Management Executives to strive for sustained long-term growth and performance in ST Engineering and its subsidiaries (ST Engineering Group or the Group). Awards of performance shares are granted conditional on performance targets set based on the ST Engineering Group corporate objectives. The performance measures used in PSP grants are Absolute Total Shareholder Return (TSR) taking reference to the Group’s Cost of Equity and Earnings Per Share (EPS) Growth against pre-determined targets. In addition to the PSP performance targets being met, final award for PSP is conditional upon satisfactory performance of the recipient. RSP2010 and RSP2020 (RSP) The RSP is established with the objective of retaining and motivating managers and above to strive for sustained long-term growth of the Group. The plans also aim to foster a share ownership culture among employees within the Group and to better align employees’ incentives with shareholders’ interests. A minimum threshold performance is required for any shares to be released to the recipients at the end of the performance period. The shares will vest equally over a four-year performance period, subject to continued employment with the Group and maintaining a satisfactory performance rating for the financial year preceding each tranche of vesting. Movement in the number of shares under the PSP and RSP are as follows: Group 2024 2023 PSP RSP PSP RSP Outstanding awards Balance at 1 January 6,356,672 16,241,986 6,069,216 14,210,928 Granted 3,065,506 8,147,708 2,196,621 8,195,870 Lapsed (1,468) (679,285) (44,305) (663,357) Released (1,835,622) (6,173,128) (1,864,860) (5,501,455) Balance at 31 December 7,585,088 17,537,281 6,356,672 16,241,986 These shares were awarded by reissuance of treasury shares. 218 ST ENGINEERING | ANNUAL REPORT 2024
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