NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D4 Share-based payment arrangements (continued) Singapore Technologies Engineering Performance Share Plan (PSP) and Singapore Technologies Engineering Restricted Share Plan (RSP) Group PSP RSP Year of grant Year of grant 2024 2023 2024 2023 Volatility of the Company’s shares (%) 13.22 14.54 11.29 – 14.41 14.48 – 21.03 Risk-free rate (%) 3.12 3.10 3.04 – 3.61 2.99 – 3.32 Share price ($) 3.97 3.43 3.97 3.43 Dividend yield (–Management’s forecast in line with dividend policy–) (–Management’s forecast in line with dividend policy–) The fair value of the performance and restricted shares is determined on grant date using the Monte Carlo simulation model. During the current year, ERCC has determined that the Group has met the PSP targets set and hence 1,835,622 performance shares were awarded in respect of the grant made in 2021 under PSP2010. In the prior year, 1,864,860 performance shares were awarded in respect of the grant made in 2020 under PSP2010. The Group provides cash-settled share-based payments for eligible employees. Group 2024 2023 $’000 $’000 Expense arising from cash-settled share-based payment transactions 8,328 6,984 Closing balance of liability for cash-settled share-based payment 9,270 7,542 Recognition and measurement The Group operates a number of share-based payment plans. A description of each type of share-based payment arrangement that existed at any time during the period is described in the Directors’ Statement. Equity-settled share-based payment plan The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. Cash-settled share-based payment plan The fair value of the employee services received in exchange for the grant is recognised as an expense with the recognition of a corresponding liability over the vesting period. Until the liability is settled, it is remeasured at each reporting date with changes in fair value recognised in profit or loss. 219 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
RkJQdWJsaXNoZXIy ODIwNTc=