Saab 2011 Annual Report Download - page 118

2008 Performance Share Plan
In the rst Performance Share Plan, around  senior executives and key
employees were invited to participate. e number of participants from the
start was . Participants in the plan purchased , shares, corresponding to
about , matching shares. Aer the end of the measurement period, on
 September , it was determined that the growth requirement of  to  per
cent had not been reached, due to which no matching will be issued in .
2009 Performance Share Plan
In the second Performance Share Plan, the  participating employees pur-
chased , shares in . e maximum number of matching shares is
about ,.
2010 Performance Share Plan
In the third Performance Share Plan, the  participating employees purchased
, shares in . e maximum number of matching shares is about ,.
2011 Share Matching Plan and Performance Share Plan
In April , Saab’s Annual General Meeting resolved to oer employees a
new Share Matching Plan and a new Performance Share Plan. e Share
Matching Plan for 2011 comprises all employees, including senior executives
and key persons. e Performance Share Plan for 2011, which is designed
solely for senior executives and key persons, entitles participants to 1-4
matching shares, depending on the category to which the employee belongs.
e plans start in January  and continue through the calender year .
e maximum number of matching shares in these two plans is ,,.
Share Matching Plan 2007 plan 2008 plan 2009 plan 2010 plan Total
Number of matching shares
at beginning of the year 582,381 628,913 456,056 - 1,667,350
Allotted during the year
(treasury shares) - - - 303,033 303,033
Less early matching -18,883 -22,766 -12,501 -1,202 -55,352
Ordinary matching -558,877 - - - -558,877
Forfeited matching shares -4,621 -17,351 -11,859 -2,559 -36,390
Number of matching shares
eligible at year-end - 588,796 431,696 299,272 1,319,764
Number of participants,
31 Dec. 2011 - 2,805 2,638 2,272
% of total number of
employees - 21 20 17
Average remaining maturity,
years - 0.4 1.7 2.7
Performance Share Plan 2009 plan 2010 plan Total
Number of matching shares at beginning
of the year 61,023 - 61,023
Allotted during the year (treasury shares) - 46,972 46,972
Forfeited matching shares -5,754 -322 -6,076
Number of matching shares
eligible at year-end 55,269 46,650 101,919
Number of participants, 31 Dec. 2011 123 110
Average remaining maturity, years 1.7 2.7
Recognised expense for above-mentioned plan,
including social security expenses 2011 2010
Share Matching Plan 2007 22 33
Share Matching Plan 2008 25 23
Share Matching Plan 2009 20 8
Share Matching Plan 2010 4 -
Performance Share Plan 2008 - -4
Performance Share Plan 2009 5 2
Performance Share Plan 2010 1 -
Total 77 62
e fair value of the services rendered is based on the share price of the
matching shares that are expected to be allotted. e share price is deter-
mined at the time of the participants’ investment adjusted by the dividend
that does not accrue to the employee during the vesting period.
e expense for the share plans is included in operating income and is
recognised in the balance sheet as equity and accrued expenses (social secu-
rity fees). Administrative expenses for the share matching plans amounted to
  () in .
SENIOR EXECUTIVES’ BENEFITS
Remuneration to Board members
In accordance with the resolution of the Annual General Meeting, the fees paid
to the members of the Board amount to  ,, (,,), consisting
of  ,, (,,) to the Chairman and  , (,) to
each of the other members elected by the Annual General Meeting, with the
exception of the President. e member nominated by  Systems, Michael
O’Callaghan, an employee of  Systems, stepped down from his position on
the Board during the year aer  Systems sold its shares in Saab. Michael
O’Callaghan has declined his fees with reference to  Systems’ policy.
For audit committee work, committee chairman Per-Arne Sandström
also received fees of  , (,) and committee members Johan
Forssell and Joakim Westh  , (,) each.
For compensation committee work, committee chairman Lena Treschow
Torell also received fees of  , (,) and committee members
Marcus Wallenberg  , (,) and Sten Jakobsson  , ().
In his capacity as a consultant, Board member Åke Svensson received
, from Saab  through  March  for assisting the new Presi-
dent and  and the Group Management. Hence the assignment has been
completed.
Remuneration to the President
e salary paid to the President and  consists of a xed portion. e previ-
ous short-term variable portion has been discontinued as of  in accord-
ance with the resolution of the Annual General Meeting. e preparation pro-
cess for compensation issues regarding the President is handled by the Board’s
Remuneration Committee according to the principles laid down by the
Annual General Meeting and then voted on by the Board.
Håkan Buskhe has participated since  September  in the Saab Global
Performance Share Plans approved by the  and  Annual General
Meetings.
Outstanding matching rights in the Saab Global Performance Share Plan
 amount as of  December  to  , (,) and in the Saab
Global Performance Share Plan  to  , at a estimated outcome.
During the period  January through  December , Håkan Buskhe
received salary and other benets totalling  ,, (,,), of
which other benets, including performance share plans, amounted to
,, (,).
Pension terms
e retirement age for the President is . e President has a dened-contri-
bution pension plan. He may decide himself on the payment term, though
within the provisions of Swedish income tax law. e pension cost for Saab
consists of pension premiums amounting to  per cent of xed salary until
the President turns , aer which the pension premium will amount to  per
cent of xed salary. Pension premiums are paid as long as the President
remains an employee of the company, but not beyond the age of . During
his rst ve years of employment, the President also receives an extra pension
contribution of  ,, payment of which is made annually and is con-
ditional on Håkan Buskhe remaining an employee at the time.
To this is added the cost of pension premiums according to the  plan.
e pension commitment is vested.
For , the cost of President Håkan Buskhe’s pension, including , was
 ,, (,,).
Severance terms
If terminated by the company, the President will receive a salary and pension
benets for a period of six months (period of notice). ereaer he will receive
severance pay equivalent to one year of salary, based on his current xed sal-
ary. If the President does not obtain new employment, he will receive an addi-
tional six months of severance pay. e salary during the period of notice and
severance will be deducted from income received from other employment
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
114 SAAB ANNUAL REPORT 2011