Notes to the Financial Statements For the financial year ended 31 December 2024 19 EMPLOYEE BENEFITS (continued) (b) Equity compensation benefits (continued) 2) Share Plans of the Company (continued) i) CLI Performance Share Plans (continued) Movements in the number of shares outstanding under the CLI PSP were summarised below: 2024 2023 (’000) (’000) At 1 January 15,793 20,894 Granted 5,254 3,713 Released (8,893) (7,667) Lapsed/Cancelled (1,304) (1,147) At 31 December@ 10,850 15,793 @ Comprised 10,849,680 (2023: 13,829,649) shares granted to employees of the Group and nil (2023: 1,963,397) shares granted to employees of related corporations. The fair values of the shares are determined using Monte Carlo simulation method which projects future share price assuming log normal distribution based on Geometric Brownian Motion Theory at measurement date. The weighted average fair values and key assumptions are set out below: Year of award 2024 2023 Weighted average fair value at measurement date $1.54 to $1.56 $3.49 Grant date 29 April 2024 and 2 December 2024 14 April 2023 Share price at grant date $2.63 to $2.75 $3.71 Expected volatility of Company’s share price (assuming the average volatility of 780-Day closing unit price from the six CLI REITs) 20.17% to 20.54% 27.10% Expected dividend yield over the vesting period 3.95% to 6.75% 3.31% to 3.59% Risk-free interest rate equal to the implied yield on zero-coupon Singapore Government bond with a term equal to the length of vesting period 2.69% to 3.50% 2.86% to 3.62% As at 31 December 2024, the number of shares granted under the CLI PSP award are as follows: Final number of shares determined but not released Final number of shares has not been determined (baseline award) 2024 2023 2024 2023 (’000) (’000) (’000) (’000) Equity-settled – 6,729 8,138 5,116 Cash-settled – 2,243 2,712 1,705 – 8,972 10,850 6,821 148 CapitaLand Investment Limited Notes to the Financial Statements For the financial year ended 31 December 2024 19 EMPLOYEE BENEFITS (continued) (b) Equity compensation benefits (continued) 2) Share Plans of the Company (continued) ii) Special CLI Founders Performance Share Plan Award (Special PSP) – Equity-settled/Cashsettled This relates to the compensation costs of the Company’s Special PSP granted under CLI PSP 2021 reflecting the benefits accruing to the employees over the service period to which the performance criteria relate. Pursuant to the CLI PSP, the Special PSP award granted to selected key executives of the Company and/or its group companies is conditional on a performance target based on longer term wealth creation objectives. Participants will receive a specified number of shares after the end of the performance period conditional on achievement of performance conditions. The ERCC grants an initial number of shares (baseline award) which are conditional on the target of the Company’s share price expressed as a multiple of the Group’s net asset value per share (Price/NAV) set for a five-year performance period. A specified number of shares will only be released by the ERCC to the recipients at the end of the qualifying performance period, provided the pre-specified minimum target is achieved. No share will be released if the minimum target is not met at the end of the performance period. On the other hand, if the superior target is met, more shares than the baseline award can be delivered up to a maximum of 300% of the baseline award. In the event of early achievement of the targets within the first three years of the performance period, a maximum of 20% to 50% of the baseline award can be released after the third year (Interim Vesting). After the end of the five-year performance period, the final number of shares based on the final achievement factor, less any shares released as part of the Interim Vesting, will be released after the fifth year. The ERCC has the discretion to adjust the number of shares released taking into consideration other relevant quantitative and qualitative factors. Recipients can receive fully paid shares, their equivalent cash value or combinations thereof, at no cost. A one-time special contingent award was granted to selected key executives in the Company and related corporations as at 1 October 2021. As a hiring strategy, such one-time special contingent award may (at the absolute discretion of the ERCC) also be extended to key executives joining the Company and/or its group companies on a date after 1 October 2021 but not later than 19 September 2022. As the performance conditions for an Interim Vesting have been satisfied, the ERCC has approved the released of a percentage of the baseline contingent award to the participants. Movements in the number of shares outstanding under the Special PSP were summarised below: 2024 2023 (’000) (’000) At 1 January 13,532 14,658 Lapsed/Cancelled (1,824) (1,126) At 31 December@ 11,708 13,532 @ Comprised 10,053,480 (2023: 11,771,509) shares granted to employees of the Group and 1,654,284 (2023: 1,760,552) shares granted to employees of related corporations. During the year, there was an Interim Vesting of 4,183,277 shares, of which 133,675 shares were cash-settled. The number of shares comprised 3,588,733 shares released to employees of the Group and 594,544 shares released to employees of related corporations. 149 Annual Report 2024
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