Board of Directors of Sandvik AB propose introduction of long-term incentive program

Board of Directors of Sandvik AB propose introduction of long-term
incentive program

The Board of Directors of Sandvik AB proposes that the Annual General
Meeting approve the introduction of a long-term, share-based incentive
program encompassing approximately 400 senior executives and key
individuals within the Group. The program will replace previous
cash-based schemes as these expire.
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 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.
  

The program includes a maximum of 12,000,000 Sandvik shares,
corresponding to about 1% of the total number of shares, and will be
secured in the form of share swaps with a third party, thus resulting in
no dilution effect. Assuming a share price of SEK 120, expected
volatility of 30% and a five-year term, the cost of the program is
estimated at slightly more than SEK 250 M.

The specific terms and conditions of the program have yet to be
finalised, but will be announced in conjunction with the notification of
the Annual General Meeting.

Sandviken, 2 February 2011
Sandvik Aktiebolag; (publ)

 

For further information, contact Anders Wallin, Vice President Group
Communications, tel +46 26 26 09 20.