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fina n c ial s

Directors’ Report Year ended 31 December 2013

Share-based Payments (continued) (b) StarHub Performance Share Plan and StarHub Restricted Stock Plan (i) The StarHub Performance Share Plan and the StarHub Restricted Stock Plan were implemented with the objectives of motivating key executives to strive for superior performance and sustaining long-term growth for the Group. (ii) The following persons shall be eligible to participate in the aforesaid plans at the absolute discretion of the ERCC: (1)

employees (including executive directors) and non-executive directors of the Group;

(2) employees (including executive directors) and non-executive directors of the Parent Group who meet the relevant age and rank criteria and whose services have been seconded to a company within the Group and who shall be regarded as an employee of the Group for the purposes of the StarHub Performance Share Plan and the StarHub Restricted Stock Plan; and (3) employees and non-executive directors of the Company’s associated companies, who in the opinion of the ERCC, have contributed or will contribute to the success of the Group. (iii) Under the StarHub Performance Share Plan, awards of shares are granted on an annual basis, conditional on targets set for a performance period, currently prescribed to be a three-year period. Awards represent the right of a participant to receive fully paid shares, their equivalent cash value or combinations thereof, free of charge, upon the participant achieving prescribed performance targets set based on medium-term corporate objectives. Awards are released once the ERCC is satisfied that the prescribed performance targets have been achieved. The actual number of shares given will depend on the level of achievement of the prescribed performance targets over the performance period. The first performance target benchmarks the performance of the Company’s Total Shareholder Return (“TSR”) measured against the MSCI Asia-Pacific Telecommunications Index including Japan, over the performance period. The second performance target used is Wealth Added which measures the investment performance in terms of the Company’s TSR against shareholders’ expected returns by using cost of equity as a benchmark. Since the commencement of the StarHub Performance Share Plan to the financial year ended 31 December 2013, conditional awards aggregating 8,405,150 shares have been granted under the aforesaid plan. No shares will be delivered if the threshold performance targets are not achieved, while up to twice the number of shares that are the subject of the award will be delivered if the stretched performance targets are met or exceeded. Details of share awards granted under the StarHub Performance Share Plan (or “PSP”), are as follows:

Participants

120

Share awards granted during the financial year

Aggregate share awards granted since commencement Aggregate share awards of the PSP to Share awards vested outstanding as at 31 December 2013 during the financial year 31 December 2013

Executive director: Tan Tong Hai

210,000

681,800

243,800

453,900

Key executives

269,000

6,812,150

494,500

1,100,066

Ingenious Hubbing

Shl ar2013 full report  
Shl ar2013 full report  
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