Saab Unveils Long-Term Incentive Program for Key Employees

Saab Unveils Long-Term Incentive Program for Key Employees

(IN BRIEF) Saab has introduced the Key Employee Plan 2024 (KEY 2024), a long-term incentive program designed to retain key employees. This program, following the Key Employee Plan 2023, is meant to motivate and keep critical talent within the company. Around 1,500 key employees are eligible for participation, selected based on skills and performance. Participants will receive awards equivalent to 15% of their annual salary, which will be converted into synthetic shares based on Saab’s stock price. KEY 2024 spans a three-year vesting period, with cash payments at two intervals, depending on share price performance. The plan will not dilute existing shareholders’ holdings and will cost Saab an estimated SEK 191 million, distributed over the years 2024-2027. The Board of Directors intends to continue such incentive plans annually to support a motivated workforce.

(PRESS RELEASE) STOCKHOLM, 23-Oct-2023 — /EuropaWire/ — Saab AB (STO: SAAB-B), leading company in the military defence and civil security markets, announces that its Board of Directors has officially approved the Key Employee Plan 2024 (KEY 2024), a strategic long-term incentive initiative aimed at retaining and motivating key personnel. This program follows the ongoing Key Employee Plan 2023, maintaining similar conditions to ensure consistency and alignment with the company’s objectives.

KEY 2024 serves as a valuable complement to Saab’s existing long-term share-based incentive program, with the primary objective of retaining vital employees. Under this plan, up to 1,500 key employees within the Saab Group will be eligible for participation. Notably, the program excludes members of the Board, the CEO, Group Management, and other senior executives, focusing on individuals selected based on their critical skills, performance, and potential contributions to the company’s success.

Participants in KEY 2024 will be granted awards equivalent to approximately 15% of their annual salary. These awards will be converted into synthetic shares, based on the prevailing share price of Saab’s Series B shares on Nasdaq Stockholm at the time of grant. KEY 2024 operates on a three-year vesting schedule, commencing in February 2024 and concluding approximately three years later. The maximum amount payable is capped at 30% of the participant’s annual salary. To receive the full payment, participants must remain employed within the Saab Group throughout the entire vesting period. Cash disbursements will occur at two intervals: approximately two and three years from the plan’s initiation, each comprising 50% of the award.

The potential payout to participants hinges on the performance of Saab’s share price over the three-year period. At the time of payment, synthetic shares are converted into cash amounts based on the prevailing share price, with tax deductions applied before disbursement.

Importantly, KEY 2024 will not result in any dilution of existing shareholders’ holdings but will entail a cost for Saab. The estimated impact on the company’s income statement is projected to be approximately SEK 191 million, to be distributed over the years 2024 to 2027.

The Board of Directors intends to maintain an annual review process for incentive plans in alignment with the principles set forth in KEY 2024, demonstrating Saab’s commitment to fostering a motivated and dedicated workforce.

Media contact:

Saab Press Centre
+46 (0)734 180 018
presscentre@saabgroup.com

Saab is a leading defence and security company with an enduring mission, to help nations keep their people and society safe. Empowered by its 20,000 talented people, Saab constantly pushes the boundaries of technology to create a safer, more sustainable and more equitable world. Saab designs, manufactures and maintains advanced systems in aeronautics, weapons, command and control, sensors and underwater systems. Saab is headquartered in Sweden. It has major operations all over the world and is part of the domestic defence capability of several nations.

SOURCE: Saab AB