Notes to the Financial Statements - SingTel

Notes to the Financial StatementsFor the financial year ended 31 March 20115.3.1 Share options (Cont’d)Weighted averageNumber ofexercise priceshare optionsper share2011 2010 2011 2010Group and Company ’000 ’000 S$ S$Outstanding as at 1 April 12,495 18,979 1.59 1.75Cancelled (329) (1,093) 1.92 2.40Exercised (3,547) (5,391) 1.83 1.97Outstanding and exercisable as at 31 March 8,619 12,495 1.48 1.592011 2010’000 ’000The outstanding share options have the following exercise prices -S$2.00 to S$2.49 - 2,077S$1.50 to S$1.99 3,027 4,088S$1.40 to S$1.49 5,592 6,3308,619 12,495Weighted average remaining validity life 1.0 year 1.6 yearsNo compensation expense is recognised when the share options are issued (see Note 2.21.3).5.3.2 Performance share plansTwo categories of awards – General Awards given to selected staff and Senior Management Awards for senior managementstaff – are made on an annual basis. The grants are conditional on the achievement of targets set for a three-year performanceperiod. The performance shares will only be released to the recipients at the end of the qualifying performance period. The finalnumber of performance shares will depend on the level of achievement of the targets over the three-year period.The General Awards are generally settled by delivery of SingTel shares, while the Senior Management Awards are generallysettled by SingTel shares or cash, at the option of the recipient.Additionally, early vesting of the performance shares can also occur under special circumstances approved by the CompensationCommittee such as retirement, redundancy, illness and death while in employment.The performance share plans provide for the award of performance shares to selected employees of SingTel and its subsidiaries.Though the performance shares are awarded by SingTel, the respective subsidiaries that wish to provide incentives to their ownemployees to retain and encourage their continued service, bear all costs and expenses in any way arising out of, or connectedwith, the grant and vesting of the awards to their employees.122 SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES