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82 The Volvo Group
Notes to consolidated financial statements
Employee stock option program 2003 with allotment in 2004
The Board of AB Volvo decided to renew the employee stock option
programs established in 2000, and renewed in 2001 and 2002,
through which senior executives in the Volvo Group are allotted
options on B shares in AB Volvo. The size of the allotment was
determined by how well certain financial goals for 2003 were ful-
filled. No options were however allotted in this program as the finan-
cial targets were not achieved.
Cost for incentive programs
All obligations related to the employee stock option programs, in-
cluding the Total Return Swap, and share based compensation pro-
gram are marked to market on a continuing basis and any change in
the obligation is recorded in the income statement. In 2004, the cost
for the employee stock option programs and share based compensa-
tion program amounted to SEK 66 M (65; 36). At December 31,
2004, provision related to the employee stock option program and
share based incentive program amounted to SEK 142 M.
2002 2003 2004
Number of of which Number of of which Number of of which
Average number of employees employees women, % employees women, % employees women, %
AB Volvo
Sweden 132 54 117 54 136 54
Subsidiaries
Sweden 24,434 18 25,553 17 27,034 18
Western Europe 24,996 14 26,604 15 26,325 14
Eastern Europe 2,087 14 2,302 15 2,731 16
North America 12,759 17 11,136 19 13,057 19
South America 2,057 11 2,216 11 3,040 12
Asia 2,526 13 3,599 13 4,114 16
Other countries 1,555 11 1,629 13 1,759 11
Group total 70,546 16 73,156 16 78,196 16
Change in number of options per program Program
Number of options 2000 2002
Dec 31, 2001 163,109 –
Alloted ––
Cancelled ––
Exercised ––
Dec 31, 2002 163,109 –
Alloted –1,125,000
Cancelled 9,792 75,000
Exercised 57,072 –
Dec 31, 2003 96,245 1,050,000
Alloted ––
Cancelled –105,000
Exercised 96,245 –
Dec 31, 2004 –945,000
2003 2004
Number at of which Number at of which
Board members and chief officers year-end women, % year-end women, %
AB Volvo
Board members 13 15 11 9
CEO and GEC 15 7 17 6
Volvo Group
Board members 1,018 13 1,017 15
Presidents and other senior executives 1,412 14 1,276 16