A minimum threshold performance is required for any shares to be released at the end of the applicable performance period. The actual number of performance shares released will depend on the achievement of predetermined targets over the applicable performance period, capped at 170% of the shares granted. The release of the shares is also conditional on satisfactory individual performance at the end of the performance period. The performance share awards granted during financial year 2019 were conditional upon the performance of the Group from financial years 2019 to 2021. For this grant, the Group has partially met the predetermined target performance levels set. RSP2020 The objective of the RSP2020 is to retain and motivate managers and above to strive for sustained long-term growth of the Group. The plan also aims to foster a share ownership culture among employees within the Group and to better align employees’ incentives with shareholders’ interests. The RSP2020 allows for restricted share awards to be granted to non-executive Directors (“NED Awards”) as part of their remuneration in respect of their office as such in lieu of cash. Such awards, which are meant to align the interests of the Directors with those of shareholders, will consist of fully paid shares with no vesting periods or performance conditions imposed although the Directors will be required to hold the shares for certain moratorium periods. Restricted share awards are generally granted on an annual basis. Save for NED Awards, restricted share awards are generally conditional on the Group meeting a target set for a one-year performance period. The performance measure used in such restricted share grants is: • Return on Capital Employed (ROCE) Under such awards, a minimum threshold performance is required for any shares to be released after the end of the applicable performance period. The shares will vest equally over a four-year period, subject to continued employment with the Group and maintaining a satisfactory performance rating for the financial year preceding each tranche of vesting. The restricted share awards granted during financial year 2021 were conditional upon the performance of the Group in financial year 2021. For this grant, the Group has met the predetermined performance threshold level set. D. Market-related Benefits: The benefits provided are comparable with local market practices. The Code requires a company to disclose the names and remuneration of the CEO and at least the top five key management personnel (who are not also directors or the CEO). Details of the remuneration package for the Group President & CEO are provided in the Summary Remuneration Table for directors on page 109. Details of the remuneration packages for the Key Management Executives are provided in the Summary Remuneration Table for Key Management Executives on page 110. In performing the duties as required under its Terms of Reference, the ERCC ensures that remuneration paid to the Senior Management Executives are strongly linked to the achievement of business and individual performance targets. This link is achieved in the following ways: a. Allocating a significant portion of executives’ remuneration to be subjected to performance conditions and vesting schedules. b. Incorporating appropriate individual performance objectives for awarding of annual PTB. The performance targets are in financial, people, operational, customer and sustainability areas aligned to the business’ strategic goals. c. Linking variable incentives to Group’s performance conditions such as EVA, ROCE, EPS growth and Absolute TSR and requiring those conditions to be met for the incentives to be awarded or vested. d. Setting realistic yet stretched performance targets each year to motivate a high degree of business performance with emphasis on both short and long-term quantifiable objectives. CORPORATE GOVERNANCE REPORT 106 ST ENGINEERING ANNUAL REPORT 2021 GOVERNANCE → Corporate Governance Report 65 ST ENGINEERING SUSTAINABILITY REPORT 2021 OVERVIEW OUR SUSTAINABILITY APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE AWARDS INDEX
RkJQdWJsaXNoZXIy NjMyNDM=