In 2003, we adopted the discipline of measuring our returns against risk-adjusted hurdles, to account for capital deployed and the associated risks.
Wealth Added (WA) is our dollar returns above a risk-adjusted hurdle. Investments in riskier sectors or markets have higher hurdles.
Total WA is the sum of all our individual investment WA, adjusted for changes in the net present value of our operating costs.
When WA is positive, we have a positive WA bonus pool to share. Part of this WA bonus pool is deferred to future years. When returns are negative, we share a negative bonus pool. This means a clawback of the deferred bonuses earned in prior years, and if needed, from future bonus pools as well.
Our WA was negative S$44.7 billion for the year.