DBS Annual Report 2015 150
37 Share-based Compensation Plans
As part of the Group’s remuneration policy, the Group provides various share-based compensation plans to foster a culture that aligns employees’ interests with shareholders, enable employees to share in the bank’s performance and enhance talent retention.
Main SchemePlan Note
DBSH Share Plan Share Plan 37.1
the Share Plan from time to time.
value or a combination.
do not accrue to employees.
after grant; another 33 will vest on the third year and the remaining 34 plus the retention award
will vest 4 years after grant.
Details of these awards are disclosed in the Corporate Governance section of the Annual Report.
DBSH Employee Share Plan ESP 37.1
are awarded ordinary shares of the Company, their equivalent cash value or a combination of both at the discretion of the Committee, when time-based conditions are met.
remuneration, the retention award which constitutes 20 of the shares given in the main award will be granted. The shares in the retention award will vest 4 years after the date of grant.
DBSH Share Ownership Scheme 37.2
Vice President and below are eligible.
base salary to buy units of the Company’s ordinary shares.
DBSH Share Option Plan Option Plan 37.3
2015 had lapsed following the expiry of all options granted under the plan.
or equivalent and above and selected employees below the rank of Vice President or equivalent.
by reference to the daily official list published by the Singapore Exchange Securities Trading Ltd,
for the three consecutive trading days immediately preceding the date of the grant.
anniversary of the date of the grant up to the date of expiration of the options.
37.1 DBSH Share Plan and DBSH Employee Share Plan
The following table sets out the movements of the awards during the year.
2015 2014 Number of shares
Share Plan ESP
Share Plan ESP
Balance at 1 January 17,216,431 1,777,193 16,008,527 1,534,441
Granted 5,718,522 889,166 5,848,665 815,748
Vested 5,154,074 471,393 4,496,850 395,370
Forfeited 412,391 196,185 143,911 177,626
Balance at 31 December 17,368,488 1,998,781 17,216,431 1,777,193
Weighted average fair value of the shares granted during the year 19.50 19.51 16.66 16.65
Financial statements 151
37.2 DBSH Share Ownership Scheme
The outstanding shares held under DBSH Share Ownership Scheme are as follows:
Ordinary shares Market
value Number
in millions 2015 2014 2015 2014
Balance at 1 January 6,593,283 6,658,006
136 114
Balance at 31 December 7,282,740 6,593,283
122 136
37.3 DBSH Share Option Plan
The following table sets out movements of the unissued ordinary shares of the Company under outstanding options.
2015 2014 Unissued number
Weighted Unissued number
Weighted of ordinary
average of ordinary
average shares under
exercise shares under
exercise outstanding options
price outstanding options
price
Balance at 1 January 354,877 12.81 1,434,875
12.64 Movements during the year:
– Exercised 350,623 12.81 1,051,456
12.58 – ForfeitedExpired
4,254 12.81 28,542 12.56
Balance at 31 December –
– 354,877 12.81
Weighted average remaining contractual life – 0.16
years of options outstanding at 31 December
Exercise price of options outstanding –
12.81 at 31 December
In 2015, 350,623 options 2014: 1,051,456 were exercised at their contractual exercise prices. During the year, the corresponding weighted average market price of the Company’s shares was 19.63 2014: 16.71.
38 Related Party Transactions
38.1
Transactions between the Company and its subsidiaries, including consolidated structured entities, which are related parties
of the Company, have been eliminated on consolidation and are not disclosed in this Note.
38.2
During the financial year, the Group had banking transactions with related parties, consisting of associates and key
management personnel of the Group. These included the taking of deposits and extension of credit card and other loan facilities. These
transactions were made in the ordinary course of business and carried out at arms-length commercial terms, and were not material.
In addition, key management personnel received remuneration for services rendered during the financial year. Non-cash benefits including
performance shares were also granted.
38.3
Total compensation and fees to key management personnel
a
are as follows:
The Group
In millions 2015
2014
Short-term benefits
b
46 44
Share-based payments
c
26 23
Total
72 67
Of which: Company Directors’ 15 14
remuneration and fees
a Includes Company Directors and members of the Management
Committee who have authority and responsibility in planning the activities and direction of the Group. The composition and number
of Directors and Management Committee members may differ from year to year
b Includes cash bonus based on amount accrued during the year,
to be paid in the following year c
Share-based payments are expensed over the vesting period in accordance with FRS 102
DBS Annual Report 2015 152
39 Fair Value of Financial Instruments
39.1 Valuation Process
