Saab 2011 Annual Report Download - page 72

68 SAAB ANNUAL REPORT 2011
ADMINISTRATION REPORT > OTHER INFORMATION
Information in the Annual Report note 37
Note 37 of the Annual Report includes a description of existing
remunerations for senior executives, including xed and variable
compensation, long-term incentive programs and other benets.
Deviation from the guidelines for remuneration for senior executives
resolved at the Annual General Meeting 2011
e Board of Directors resolved to deviate from the guidelines
during 2011.
e President and CEO has during 2011 received a benet in
the form of ight travels. e reason for this was that at the time of
employment and for a period of time thereaer, the President and
CEO had his residence in another place than the place of work. In
addition, other customary benets have been provided to mem-
bers of the Group Management in order to facilitate the persons’
discharge of his or her duties.
SHARE REPURCHASE
Share repurchase
In April 2007, Saab’s Annual General Meeting resolved to oer employ-
ees the opportunity to participate in a voluntary share matching plan
where they can purchase Series B shares in Saab during a 12-month
period. Purchases are made through deductions of between 1 and 5
per cent of the employee’s monthly salary. If the employee retains the
purchased shares for three years aer the investment date and is still
employed by the Saab Group, the employee will be allotted a corre-
sponding number of Series B shares. e plan was introduced in au-
tumn 2007 in Sweden and Norway. In 2008 it was expanded to include
employees in Denmark, Germany, the UK, the U.S., Switzerland and
Australia, and in 2009 it was expanded again to cover employees in
South Africa. In April 2008, Saab’s Annual General Meeting resolved
to introduce a performance-based plan for senior executives and key
employees entitling them to 2–5 matching shares depending on the
category the employee belongs to. In addition to the requirement that
the employee remain employed by Saab aer three years, there is a re-
quirement that earnings per share grow in the range of 5 to 15 per cent.
e Annual General Meetings in 2009, 2010 and 2011 resolved
to renew the share matching plan and performance share plan.
e 2011 share matching plan comprises all employees, including
senior executives and key persons. e performance share plan for
2011, which is directed to senior executives and key persons entitles
participants to 1–4 matching shares, depending on the category the
employee belongs to.
In 2007, Saab repurchased 1 million shares, in 2008 and 2009 it
repurchased 1,340,000 shares per year, and in 2010 it repurchased
838,131 shares to hedge the plans.
e Annual General Meeting on 7 April 2011 renewed the
Board of Directors’ mandate to repurchase up to 10 per cent of the
Company’s shares, of which 1,340,000 shares to hedge the share
matching plan and performance share plan.
e purpose of the authorisation was to provide the Board with
greater scope in working with the company’s capital structure and
enable acquisitions when considered appropriate, as well as to
secure the Group’s share matching plan. e mandate applied until
the next Annual General Meeting. Repurchases may be eected
over the stock exchange or through oerings to shareholders. It was
also proposed that the Board’s mandate include the possibility to
transfer repurchased shares as allowed by law. Repurchased shares
can also be transferred in connection with the company’s share
matching plan and performance share plan.
During the second quarter 2011, Saab announced that the Board
had decided to utilise its authorisation for repurchases and that
the repurchases could be made on NASDAQ OMX Stockholm at a
price within the registered share price interval on each occasion.
No shares were repurchased in 2011.
NUMBER OF REPURCHASED SHARES
e number of repurchased B shares held in treasury on 31
December 2011 was 3,818,386, which was 614,229 shares fewer
than at year-end 2010.
e Saab Pension Fund did not hold any shares in Saab on 31
December 2011.
DIVIDEND
e Board of Directors proposes that shareholders receive a divi-
dend of SEK 4.50 per share (3.50), or a total of MSEK 474 (367).
e proposed record day for the dividend is 24 April 2012, and the
dividend is expected to be paid on 27 April 2012.
IMPORTANT EVENTS AFTER THE BALANCE SHEET
EVENTS AFTER THE BALANCE SHEET DATE
t Saab announced that Combitech had acquired Sörman Information.
The acquisition is part of Combitech’s strategy to expand its range of
services and grow in the Nordic consultancy market. Following the ac-
quisition of Sörman, Combitech has an annual turnover of approximately
SEK 1.1 billion and 1,100 employees.
t Saab Sensis was selected by the US Federal Aviation Administration
(FAA) for the Airport Surface Surveillance Capability (ASSC) program.
FAA incrementally funded MSEK 34 (MUSD 5) of the MSEK 370
(MUSD 55) five-year contract. In addition, options for deliveries beyond
the five-year period were valued at MSEK 442 (MUSD 65), for a total
contract value of MSEK 825 (MUSD 119).
t Saab received a framework order worth MSEK 98 from FMV concerning
technical system support for materiel operated by the Swedish Armed
Forces during 2012.
t Saab received a multi-year contract for the next generation of laser-
based training systems for the US Army’s armoured combat vehicles.
The order value was MSEK 116 (MUSD 17.2). The indefinite delivery/
indefinite quantity (ID/IQ) contract consists of this order and options that
can be exercised over a time period of five years with a potential value of
MSEK 600 (MUSD 90).
No other signicant events have occurred aer the closing date that
aect the Group’s results or nancial position.