Electrolux Proposes To Replace Personnel Options Program Mar 16, 2004

Printable format  Email this Article  Search

Appliance maker Electrolux AB said it will propose to replace the current stock option programs with a performance-based long-term share program from 2004 at the company's annual general meeting in April.

The proposed program is based on value-creation targets for the company that are established by the board of directors, and involves an allocation of shares if theses targets have been reached or exceeded after a 3-year period.

Under the plan, participants are permitted to sell allocated shares to cover personal income tax, but the remaining shares must be held for 2 years. The program is in line with Electrolux principles for remuneration based on performance, and is part of the total compensation for the company's senior managers and key employees. Participants in the program comprise five groups-—the President, other members of company management, and three groups of other senior managers and key employees.

The board will also propose a repurchase or redemption program for A- and B-shares during the period before the general meeting in 2005. The company may repurchase shares so that after each repurchase, the company holds a maximum of 10 percent of the total number of shares in the company.

In addition, the board will also propose that A- and B-shares be transferred in connection with company acquisitions during the period up to the general meeting. A maximum of 1.5 million B-shares may be transferred free of charge to the participants in the proposed share program.

Back to Daily News