Page 166 - S P Setia Annual Report 2016
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164   S P Setia Berhad Group
                Annual Report 2016




          Notes To The Financial Statements

          For The Financial Year Ended 31 December 2016

          19.   SHARE CAPITAL (CONT’D.)

              The Long Term Incentive Plan (“LTIP” or “Scheme”) was implemented on 10 April 2013. The LTIP, which comprises the ESGP and ESOS
              allows the Company to grant shares and/or share options under the ESGP and ESOS respectively to eligible employees and Executive
              Directors of the Group of up to 15% of the issued and paid-up share capital of the Company. The LTIP is governed by the By-Laws
              of the LTIP which was approved by the shareholders on 28 February 2013 and is administered by the NRC which is appointed by the
              Board, in accordance with the By-Laws. The LTIP shall be in force for a period of 5 years up to 9 April 2018 and pursuant to By-Laws
              18.2 of the By-Laws of LTIP, the Board of Directors shall have the discretion to extend the duration of the LTIP for another 5 years up
              to 9 April 2023.
              The main features of the Scheme are as follows:

              (a)   The maximum number of new ordinary shares which may be made available under the Scheme at the point in time when an LTIP
                   award is offered shall not be more than fifteen percent (15%) of the issued and paid-up ordinary share capital of the Company.
              (b)   The LTIP awards shall be awarded after taking into consideration the employee’s position, contribution and performance (where
                   applicable) or such criteria as the NRC may deem fit subject to the following:

                   (i)   that the number of new ordinary shares made available under the Scheme shall not exceed the amount stipulated in (a)
                       above; and

                   (ii)   that not more than ten percent (10%) of the total new ordinary shares to be issued under the Scheme at the point in time when
                       an LTIP award is offered be allocated to any employee or Executive Director who, either singly or collectively through persons
                       connected with him, holds twenty percent (20%) or more in the issued and paid-up share capital of the Company.

              (c)   In the case of the ESGP, the shares will be vested with the grantee at no consideration on the vesting date; while in the case of
                   the ESOS, the option price will be determined based on the five (5) days volume weighted average market price of the ordinary
                   shares on the date the ESOS award is offered with a potential discount of not more than ten percent (10%) or at the par value of
                   the ordinary shares, whichever is higher.

              (d)   The shares granted under the ESGP will vest over four (4) years from the date of the LTIP award and the share options granted
                   under ESOS will vest over three (3) years from the date of the LTIP award.

              The movement during the financial year in the number of shares and share options in which employees of the Group and the Company
              is entitled to are as follows:
              ESGP


                                                   At 1.1.2016     Granted        Vested        Lapsed   At 31.12.2016
                                                        ’000          ’000          ’000          ’000           ’000

               Offer 1                                 2,762             -         (2,738)         (24)            -
               Offer 2                                  194              -          (192)           (2)            -
               Offer 3                                 6,981             -         (3,384)        (209)         3,388
               Offer 4                                 8,726             -         (2,815)        (346)         5,565
               Offer 5                                     -         5,429             -           (82)         5,347
                                                      18,663         5,429         (9,129)        (663)        14,300
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