STOCKHOLM, Sweden, Feb. 15, 2002 (PRIMEZONE) -- The Board of Directors of AB Industrivarden today decided to grant stock options to 22 employees of the Parent Company. The option program aims to encourage the employees' participation and involvement in the company by linking part of their compensation to the company's long-term value growth. The program also aims to attract talented employees. The option program will make up a part of the total compensation package offered to the employees and has been drawn up by Industrivarden's compensation committee and approved by the Board of Directors.
A total of 187,000 stock options have been granted to the employees, including 30,000 to the CEO. New employees may be granted a maximum of 20,000 options per employee. The total number of options outstanding will not exceed 260,000. The options have a term until 28 February 2007, and each option entitles its holder to buy one Class A share of Industrivarden stock from a third party at the exercise price of SEK 177 or, alternatively, to receive cash payment of the difference between the exercise price and the market price on the exercise date. The exercise price corresponds to 115% of the average price of Industrivarden Class A shares during the period January 21 - February 1, 2002. The closing price of Industrivarden's Class A shares on February 14, 2002, was SEK 153. As a rule, the options may only be exercised if the employee remains employed by the company, and cannot be transferred to a third party. The options do not constitute securities and have been granted to the employees free of charge.
Industrivarden intends to hedge its commitment against a price rise by entering into a swap agreement. The annual cost of the swap agreement is estimated to be SEK 0.6 M.
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