SODERTALJE, Sweden, July 27, 2005 (PRIMEZONE) -- Scania's Board of Directors has extended the President and CEO Leif Ostling's employment contract for a period of three years, until 31 March 2009.
The fixed annual salary will be SEK 7,500,000 plus an annual extra pension provision of SEK 4,410,000, applicable from 1 January 2006 and for the entire extension period.
The new employment contract prescribes that the agreed salary and incentive benefits, with the exception of the extra pension provision, will apply even if the employment should cease due to termination by the company. The previous condition that the employment would end automatically twelve months after Volkswagen AG reduced its holding in Scania AB below 5 percent is no longer applicable. Other terms and conditions have been left unchanged in the new contract.
The Board of Directors believe that the extension of President and CEO Leif Ostling's employment contract will secure stability and continuity for Scania, to the benefit of all shareholders.
Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company's operations consist of products and services in the financial and service sectors, assuring Scania customers cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production plants are located in Europe and South America, with facilities for the global exchange of both components and finished vehicles. In 2004, invoiced sales totalled SEK 56.7 billion and net income amounted to SEK 4.1 billion.
Scania's press releases are available on the Internet at www.scania.com
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