Page 63 - index

61

StarHub Ltd Annual Report 2015

Pursuant to the RSP, the ERCC has decided to grant The Group has attained an achievement factor which is Overview
contingent awards on an annual basis, conditional on targets reflective of meeting the pre-determined target performance
set for a two-year performance period. The performance level for RSP awards granted based on the performance
measures, set based on the Group corporate objectives, are: period from financial year 2014 to 2015.

• Return on Invested Capital (ROIC); and As at 31 December 2015, StarHub does not have any existing
• Earnings before Interest, Taxes, Depreciation and StarHub Share Option Plan.

Amortisation (EBITDA) D. Market-related Benefits:
The benefits provided are comparable with local market
A minimum threshold performance is required for any practices.
restricted shares to be released to the recipient at the end
of the performance period. The actual number of shares The details of the top five key management personnel
released will depend on the achievement of set targets over remuneration in bands of $250,000 and percentage terms for
the performance period, and will be determined by the ERCC the services rendered by them to the Group for FY2015, are
at the end of the performance period, capped at 1.5 times of set out in Table 3 below.
the conditional award. The shares will be released in equal
tranches over two consecutive years. Strategy

Table 3 Fixed(1) Variable(2) Benefits(3) Share-based Total Remuneration Performance
(%) (%) (%) Compensation(4) (%) Bands(5)
Dennis Chia (%)
Kevin Lim 80 16 4 (%) 100
Howie Lau 43 21 4 100 A(6)
Jeannie Ong 59 14 5 – 100
Mock Pak Lum 43 20 4 100 C
Total 49 20 5 32 100 A(6)
$4,388,148
22 C

33 B

26

(1) Fixed refers to base salary, Annual Wage Supplement and fixed allowances earned for FY2015. Governance & Sustainability

(2) Variable refers to incentives paid and accrued for the year pursuant to StarHub’s performance bonus scheme and Economic Value Added (EVA) scheme for Financials
FY2015. StarHub’s performance bonus scheme is the “balanced scorecard” scheme used to determine the annual performance bonuses payable to
StarHub’s employees. The EVA scheme rewards for sustainable shareholder value creation over the medium term, with alignment to StarHub’s strategic
business objectives. Under this scheme, each of StarHub’s employees is given clear objectives on his personal scorecard, which are aligned to StarHub’s
overall strategic objectives of growth and profitability, creating customer value, operational efficiency, excellence and optimal customer management, and
developing a motivated and well trained workforce. Under the EVA scheme, a notional EVA bank account is set up for each senior executive, into which the
annual EVA performance bonus earned by him each year is credited. One third of the total amount in his EVA bank account is payable annually at a later
date in the following financial year, and the remaining balance in his EVA bank account is payable to him upon his resignation or termination of
employment (other than for cause), subject to certain conditions being met. The balance in the EVA bank account will increase or decrease depending on
StarHub’s EVA performance in subsequent years.

(3) Benefits are stated on the basis of direct costs to StarHub, and include tax equalisation, housing and other non-cash benefits such as leave, medical
scheme and club membership.

(4) Based on the fair values of PSP and RSP contingent shares granted in 2015, using the Monte Carlo simulation model.

(5) Remuneration bands:
“A” refers to remuneration between $500,001 and $750,000 p.a.
“B” refers to remuneration between $750,001 and $1,000,000 p.a.
“C” refers to remuneration between $1,000,001 and $1,250,000 p.a.

(6) Mr Dennis Chia and Mr Howie Lau joined StarHub as CFO and CMO respectively with effect from 8 July 2015. Accordingly, the amount of actual
compensation received was based on the period from 8 July 2015 to 31 December 2015. Their fixed pay includes sign-on bonus awarded to both Mr Dennis
Chia and Mr Howie Lau upon joining StarHub and there was share-based compensation granted to Mr Howie Lau as a one-off time-based restricted award
of 32,500 shares.

(7) Mr Nicholas Tan Kok Peng resigned as CFO of StarHub with effect from 1 May 2015. For his employment with StarHub, he received compensation
(including benefits-in-kind and deferred compensation accrued for FY2015) from StarHub for services rendered in all capacities to the Group. Upon
Mr Tan’s departure, he was awarded a package of S$383,040 in recognition of his contribution to StarHub. The outstanding conditional share awards
granted to Mr Tan under the StarHub Performance Share Plan in 2014 lapsed on 1 May 2015 and the outstanding conditional share award granted under
the StarHub Restricted Share Plan in 2014 was pro-rated and will continue to be vested to Mr Tan on the relevant vesting date. Mr Tan’s earned EVA bank
will be paid out to him in two equal tranches during the next two annual payout dates.