Page 171 - XL Axiata Integrated Anual Report 2020 ENG

2020 Integrated Annual Report 169
Employee and/or
Management Stock Option
Programs
Since 2016, XL Axiata implemented the 2016-2020 Long Term Incentive Program (“2016-2020 LTI Program”) as a continuation from the previous 2010 - 2015 Long Term Incentive Program (“2010-2015 LTI Program”).
The 2016-2020 LTI Program has been approved by the Board of Commissioners on 10 December 2015 as well as approved by the GMS on 10 March 2016. The latest Amendment and Restatement of 2016-2020 LTI Program based on Extraordinary General Meeting of Shareholders 30 September 2019 has approved the changes of Long Term Incentive Program 2016 – 2020 in a form of the followings :
1. 2016-2020 LTI Program Grant Cycle 1A, 1B, 2 and 3:
• XL Axiata shares without option right through the issuance of shares without Pre-Emptive Rights
which were granted to employees and management of XL Axiata on General Manager level (and its
equivalence) to the Board of Directors level.
• Cash, which will be granted to employees of XL Axiata on staff, level to Manager level (and its
equivalence).
2. 2016-2020 LTI Program Grant 4 and 5:
» Only Directors will be awarded in the form of cash consideration and the Company’s performance will be measured based on Return on Invested Capital (“ROIC”).
The 2016-2020 LTI Program aims to:
• Improve the long term performance of XL Axiata;
• Maintain excellent management and employees and award XL Axiata management and employees
for their performance;
• Improve the loyalty of the management and employees so that they have sense of belonging towards
XL Axiata;
• Motivate the management and employees to improve their performance; and
• Provide additional value for XL Axiata to attract prospective management and employees with the
skills that XL Axiata needs.
The 2016 – 2020 LTI Program has five (5) Grant Cycle, in which Grant Cycle, the eligible LTI Participants will receive written notice on the rights to receive incentive along with estimate numbers of incentive.
The incentive will be further vested (vesting period) in the third year after each Grant Cycle. For the first implementation in 2016, the LTI Program 2016 - 2020 Grant 1, provided employees with two (2) grants whereby Grant 1A will be vested after year two as of the initial Grant Cycle and Grant 1B will be vested in accordance to the normal vesting cycle in year three. The given number of incentives will be determined based on the XL Axiata’s performance value and the eligible LTI Participants themselves hence the amount incentive will be earned maybe different from the estimated as informed on each Grant Cycle.
TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION PT. XL AXIATA TBK