Incentive scheme

Background, description, etc.

An incentive scheme that gives the employee the long-term opportunity to be part of the Company’s growth in value is expected to stimulate greater dedication and elevate motivation for those participating and will bind those involved more closely to the ITAB Group. Moreover, an incentive scheme is expected to boost the sense of affiliation between the subsidiaries and thereby generate a more Group-wide focus. It is the Board’s belief that the incentive scheme will prove beneficial to both the employees covered by the scheme and the Company's shareholders. Moreover, it will improve our ability to recruit and retain competent colleagues.

Introduction of a global incentive scheme

The 2008 Annual General Meeting decided to introduce a performance-based incentive scheme for senior executives and other key individuals employed within the ITAB Group. Some fifty employees are involved in the incentive programme with a maximum of 420,000 options, including options aimed at financing costs incurred for the programme, which corresponds to at most 2.9% of the capital at full takeup, calculated on the basis of the current number of shares. The programme is running with effect from October 2008, with the potential for subscription during the period September 2011 to March 2012 at a subscription rate of SEK 97 per share. The subscription rate was calculated using the Black & Scholes formula.

The 2010 AGM decided to introduce an incentive scheme for all employees within the ITAB Group. 118 employees opted to participate in the scheme involving 467,250 warrants, in which one warrant gives the right to subscribe for one Class B share at a price of SEK 92.50 during November 2012. The price is market rate and calculations were made using the Black & Scholes formula. Calculated on the current number of shares, this means a dilution of maximum 3.3% of the capital.