Page 126 - Annual Report 2014

Share-based Payments (continued) Overview
(b) StarHub Share Plans 2014 and StarHub Share Plans 2004 (collectively, the “StarHub Share Plans”)

(i) The StarHub Share Plans were implemented with the objectives of motivating key executives to strive for superior
performance and sustaining long-term growth for the Group.

(ii) The termination of the StarHub Share Plans 2004 was without prejudice to the rights of holders of awards accepted Strategy
and outstanding under the StarHub Share Plans 2004 as at the date of termination. The outstanding awards under
the StarHub Share Plans 2004 were vested according to the terms of the StarHub Share Plans 2004 and the
respective grants.

(iii) The following persons were/shall be eligible to participate in the StarHub Share Plans, respectively at the absolute Performance
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 Share Plans; and

(3) employees and non-executive directors of the Company’s associated companies, who in the opinion of the ERCC, Governance
have contributed or will contribute to the success of the Group.

(iv) Under the StarHub PSP 2004 and the StarHub PSP 2014, awards of shares are granted on an annual basis, conditional Financials
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.

Since the commencement of the StarHub PSP 2004 to the financial year ended 31 December 2014, conditional awards
aggregating 9,050,250 shares have been granted under the aforesaid plan. For share awards granted prior to and
during the financial year ended 31 December 2013, 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. For share awards granted during the financial year ended 31 December 2014,
no shares will be delivered if the threshold performance targets are not achieved, while up to 1.825 times the number
of shares that are the subject of the award will be delivered if the stretched performance targets are met or exceeded.
The performance targets benchmark (a) the performance of the Company’s Total Shareholders’ Return (“TSR”) measured
against the MSCI Asia-Pacific Telecommunications Index (including Japan) over the performance period, and (b) the
Wealth Added which measures investment performance in terms of the Company’s TSR against shareholders’ expected
returns using cost of equity as a benchmark.

Details of share awards granted under the StarHub PSP 2004 are as follows:

Participants Share awards granted Aggregate share Share awards vested Aggregate
during the financial year awards granted since during the financial year share awards
commencement of the outstanding as at
StarHub PSP 2004 to 31 December 2014

31 December 2014

Executive director: 278,600 960,400 243,800 610,600
Tan Tong Hai 366,500 7,178,650 621,000 929,500

Key executives

No share awards have been granted under the StarHub PSP 2014 since its commencement.

StarHub Ltd | Annual Report 2014 123