Page 127 - Annual Report 2014

Directors' report

year ended 31 december 2014

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

(v) Under the StarHub RSP 2004 and the StarHub RSP 2014, awards granted vest only after the satisfactory completion of
time-based service conditions (time-based restricted awards) or where the award is performance-related, after a further
period of service beyond the performance period (performance-based restricted awards).

No minimum vesting periods are prescribed under the StarHub RSP 2004 and the StarHub RSP 2014 and the length of
the vesting period in respect of each award will be determined on a case-by-case basis. Performance-based restricted
awards differ from awards granted under the StarHub PSP 2004 and the StarHub PSP 2014 in that an extended vesting
period is imposed beyond the performance period.

The performance-based restricted 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. The actual number of shares to be released depends on the level of attainment of the performance targets over
the performance period.

For performance-based restricted awards granted prior to and during the financial year ended 31 December 2007, (a) the
first performance target benchmarks the performance of the Company’s TSR measured against the Straits Times
Index (“STI”) over the performance period; and (b) the second performance target used is measured against
Free Cashflow (“FCF”).

For performance-based restricted awards granted during and from financial year ended 31 December 2008 to
financial year ended 31 December 2013, the performance targets used are measured against the Return on
Invested Capital (“ROIC”) and the FCF respectively.

For performance-based restricted awards granted during and from financial year ended 31 December 2014 onwards,
the performance targets used are measured against the Return on Invested Capital (“ROIC”) and the Earnings Before
Interest, Taxation, Depreciation and Amortisation (“EBITDA”).

Since the commencement of the StarHub RSP 2004 to the financial year ended 31 December 2014:

(1) performance-based restricted awards aggregating 17,413,000 shares have been granted under the aforesaid
Plan. No shares will be delivered if the threshold performance targets are not achieved, while up to 1.3 times
or as the case may be 1.5 times, the number of shares that are the subject of the award, will be delivered if
stretched performance targets are met or exceeded;

(2) a time-based restricted award of 100,000 shares has been granted on 15 January 2009. The shares under this
award were vested in three equal tranches over a 3-year period from 1 January 2009 to 31 December 2011
according to a specified vesting schedule;

(3) a time-based restricted award of 213,000 shares has been granted on 17 May 2010. The shares under this award
were vested in May 2011 upon the participants’ continued tenure as non-executive directors of the Company for
a full one-year period from the date of grant;

(4) a restricted award of 155,900 shares has been granted on 7 June 2012. The shares under this award formed 30%
of the non-executive directors’ remuneration for the financial year ended 31 December 2011 and were vested
immediately without any further vesting period;

(5) a restricted award of 99,400 shares has been granted on 10 May 2013. The shares under this award formed 30%
of the non-executive directors’ remuneration for the financial year ended 31 December 2012 and were vested
immediately without any further vesting period; and

124 many lives of hubbing