SANDVIKEN, Sweden--(BUSINESS WIRE)-- The Board of Directors of Sandvik AB (STO:SAND) proposes that the Annual General Meeting resolve on a long-term incentive program for 2014 (“LTI 2014”) in the form of a performance share program.
LTI 2014 comprises approximately 350 senior executives and key employees within the Sandvik Group. Participation requires that an investment in Sandvik shares be made. Each Sandvik share invested in entitles the participant to be allotted, after a period of three years, one Sandvik share free of charge. Provided that certain performance targets with respect to Earnings Per Share are met, each Sandvik share invested in also entitles the participant to be allotted further Sandvik shares free of charge.
The intention of the Board of Directors is to also propose the Annual General Meetings 2015 and 2016 to resolve on long-term incentive programs in accordance with the principles of LTI 2014. The total number of shares that can be allotted pursuant to the long-term incentive programs during the years 2014-2016 must not exceed 12,540,000 shares, which corresponds to approximately one per cent of the number of outstanding shares in Sandvik. LTI 2014 comprises up to 3,500,000 shares. The delivery of these shares will be secured through a share swap agreement with a third party.
The total cost of LTI 2014 is estimated at up to 293 million SEK, based on the assumption of maximum performance and a highest price per share of 100 SEK.
Stockholm, 24 March 2014
Sandvik is a global industrial group with advanced products and world-leading positions in selected areas – tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2013 the Group had about 47,000 employees and representation in 130 countries, with annual sales of about 87,000 million SEK.
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