Remuneration

Description of ASSA ABLOY’s system of variable remuneration to senior executives and of each outstanding equity- and equity-price-related incentive programme.

Below follows a description of ASSA ABLOY’s system of variable remuneration to senior executives and of each outstanding share- and share-price-related incentive programme in accordance with the Swedish code of Corporate Governance, Section 10.3. The remuneration complies with the 2014 Annual General Meeting’s remuneration guidelines for senior executives.

The President and CEO and other members of the Executive Team are considered senior executives.

System of variable remuneration to senior executives
The variable part of the remuneration to senior executives is paid partly in cash and partly in the form of shares.

Senior executives should have the opportunity to receive variable cash remuneration based on the outcome in relation to financial targets and, when applicable, individual targets. This remuneration should be the equivalent to a maximum 75 percent of the basic salary (excluding social security expenses).

In addition, senior executives should, within the framework of the long-term incentive programme (LTI 2014), have the opportunity to receive variable remuneration in the form of shares based on the outcome in relation to determined target levels in respect of earnings per share during 2014. This remuneration model also includes the right, when purchasing a share under certain conditions, to receive a free matching share from the company. This remuneration should, if the share price is unchanged, be equivalent to a maximum 75 percent of the basic salary (excluding social security expenses).

For a more detailed description of the remuneration to senior executives can be found in the remuneration guidelines adopted at the 2014 Annual General Meeting.

BoD proposal remuneration guidelines 2014, see Notice under Item 14.

Outstanding incentive programmes

Long-term incentive programme

LTI 2014

At the 2014 Annual General Meeting, it was decided to implement a new long-term incentive programme (LTI 2014) for senior executives and other key staff in the Group.

For each Series B share acquired by the CEO within the framework of LTI 2014, the company assigns one matching stock option and four performance-based stock options. For each Series B share acquired by senior executives, the company assigns one matching stock option and three performance-based stock options. For other participants, the company assigns one matching stock option and one performance-based stock option.

Each matching stock option entitles the holder to receive one free Series B share in the company after three years, provided that the holder is still employed in the Group when the interim report for the first quarter 2017 is published and has retained the shares acquired within the framework of LTI 2014.

Each performance-based stock option entitles the holder to receive one free Series B share in the company three years after assignment, provided that the above conditions have been fulfilled. In addition, the maximum level in a range determined by the Board for the performance of the company’s earnings per share in 2014 must have been fulfilled.

BoD Proposal LTI 2014, see Notice under Item 16.
 

LTI 2013

At the 2013 Annual General Meeting, it was decided to implement a new long-term incentive programme (LTI 2013) for senior executives and other key staff in the Group.

For each Series B share acquired by the CEO within the framework of LTI 2013, the company assigns one matching stock option and four performance-based stock options. For each Series B share acquired by senior executives, the company assigns one matching stock option and three performance-based stock options. For other participants, the company assigns one matching stock option and one performance-based stock option.

Each matching stock option entitles the holder to receive one free Series B share in the company after three years, provided that the holder is still employed in the Group when the interim report for the first quarter 2016 is published and has retained the shares acquired within the framework of LTI 2013.

Each performance-based stock option entitles the holder to receive one free Series B share in the company three years after assignment, provided that the above conditions have been fulfilled. In addition, the maximum level in a range determined by the Board for the performance of the company’s earnings per share in 2013 must have been fulfilled. The performance based condition has been fulfilled.

BoD Proposal LTI 2013

LTI 2012

At the 2012 Annual General Meeting, it was decided to implement a new long-term incentive programme (LTI 2012) for senior executives and other key staff in the Group.

For each Series B share acquired by the CEO within the framework of LTI 2012, the company assigns one matching stock option and four performance-based stock options. For each Series B share acquired by senior executives, the company assigns one matching stock option and three performance-based stock options. For other participants, the company assigns one matching stock option and one performance-based stock option.

Each matching stock option entitles the holder to receive one free Series B share in the company after three years, provided that the holder is still employed in the Group when the interim report for the first quarter 2015 is published and has retained the shares acquired within the framework of LTI 2012.

Each performance-based stock option entitles the holder to receive one free Series B share in the company three years after assignment, provided that the above conditions have been fulfilled. In addition, the maximum level in a range determined by the Board for the performance of the company’s earnings per share in 2012 must have been fulfilled. The performance based condition has been fulfilled.

BoD proposal LTI 2012.

 

Published 30 Apr 2013

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IR-contacts

Niklas Ribbing, Head of IR

Niklas Ribbing, Head of Investor Relations, ASSA ABLOY AB.

Tel.:+46 8 506 485 79
Mobile: +46 70 555 55 77
E-mail Niklas

Hedvig Wennerholm, IR Co-ordinator

 Hedvig Wennerholm, IR Co-ordinator, ASSA ABLOY AB

Tel.: +46 8 506 485 51
Mobile: +46 70 564 8571
E-mail Hedvig

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