Sandvik's Board of Directors propose a long-term incentive program 2013
Sandviks Board of Directors propose that the Annual General Meeting resolve on a long-term incentive program for 2013 (LTI 2013) encompassing approximately 350 senior executives and key individuals within the Group, on substantially the same terms and conditions as the 2011 and 2012 long-term incentive programs.
Participants are offered allotment of employee stock options that entitle the holder to acquire Sandvik shares after three years at a set exercise price, on condition that certain performance targets are met. For some executives in more senior positions, a personal investment in Sandvik shares will also be required to gain entitlement to allotment of employee stock options and matching rights which entitle the holder to acquire Sandvik shares after three years at a set exercise price.
LTI 2013 comprises a maximum of 12,000,000 Sandvik shares, corresponding to approximately 1% of the total number of shares in the company The Board of Directors does not at present intend to take measures to hedge the program to ensure the delivery of Sandvik shares. Assuming a share price of 100 SEK, expected volatility of 40% and a five-year term, the cost of LTI 2013 is estimated at approximately 241 MSEK.
Stockholm, 29 January 2013
Sandvik Aktiebolag (publ)