Saab 2010 Annual Report Download - page 109

Mortality: Mortality is the same assumption recommended by the Financial
Supervisory Authority ( :), based on Makeham formulas for men
and women.
Marriage: Marriage is the same assumption recommended by the Financial
Supervisory Authority ( :).
Employee turnover: e likelihood that an individual ends his/her employ-
ment is assumed to be  per cent per year.
Parent Company’s pension obligations
Funds allocated for pensions according to the balance sheet correspond to
the net present value of existing pension obligations less funds that are
secured by Saab’s pension fund.
Parent Company
MSEK 31-12-2010 31-12-2009
FPG/PRI pensions 75 257
Other pensions 44 62
Other provisions for pensions 73 60
Total 192 379
Of which credit guarantees via FPG/PRI 107 287
Group Parent Company
MSEK 2010 2009 2010 2009
Amount of provision
expected to be settled after
more than 12 months 5 4 67 263
Share Matching Plan
In April , Saab’s Annual General Meeting resolved to oer employees the
opportunity to participate in a Global Share Matching Plan. e Board consid-
ers it important that Saab’s employees share a long-term interest in the appre-
ciation of the company’s shares. Employees who participate in the plan can
have up to  per cent of their gross base salary withheld to purchase shares on
the   Stockholm during a twelve-month period. 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 correspond-
ing number of Series  shares.
In April , Saab’s Annual General Meeting resolved to introduce a per-
formance-based plan for senior executives and key employees entitling them
to – 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 requirement that earnings per share grow in the
range of  to  per cent.
2007 Share Matching Plan
In , employees purchased , Series  shares, corresponding to the total
number of matching shares. e number of participants from the start was
,. Matching shares will be allotted four times in , beginning in January.
2008 Share Matching Plan
In April , Saab’s Annual General Meeting resolved to oer employees a
new Share Matching Plan with similar terms as the  plan. In , employ-
ees purchased , Series  shares, corresponding to the maximum number
of matching shares. e number of participants from the start was ,.
2009 Share Matching Plan
In April  Saab’s Annual General Meeting resolved to oer a third Share
Matching Plan with similar terms as the previous years’ plans. In , partici-
pants purchased , Series  shares, corresponding to the total number of
matching shares. e number of participants from the start was ,.
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.
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 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 with similar
terms as the previous years’ plans. 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 628,148 667,142 - - 1,295,290
Allotted during the year
(treasury shares) - - 462,877 - 462,877
Less early matching -22,228 -17,650 -4,858 - -44,736
Forfeited matching shares -23,539 -20,579 -1,963 - -46,081
Number of matching shares
eligible at year-end 582,381 628,913 456,056 - 1,667,350
Number of participants,
31 Dec. 2010 4,353 3,218 2,717 2,066 -
% of total number of
employees 35 26 22 16 -
Average remaining maturity,
years 0.4 1.4 2.7 3.7 -
Performance Share Plan 2008 plan 2009 plan 2010 plan Total
Number of matching shares at beginning
of the year 116,140 - - 116,140
Allotted during the year (treasury shares) - 62,663 - 62,663
Less early matching - - - -
Forfeited matching shares -7,376 -1,640 - -9,016
Number of matching
shares eligible at year-end 108,764 61,023 - 169,787
Number of participants, 31 Dec. 2010 187 126 99 -
Average remaining maturity, years 1.4 2.7 3.7 -
Recognised expense for above-mentioned plan,
including social security expenses 2010 2009
Share Matching Plan 2007 33 32
Share Matching Plan 2008 23 12
Share Matching Plan 2009 8 -
Performance Share Plan 2008 -4 4
Performance Share Plan 2009 2 -
Total 62 48
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 company’s expense is recognised in the balance sheet as equity and
accrued expenses (social security 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  ,, (,,), con-
sisting of  ,, (,,) to the Chairman and  ,
(,) to each of the other members elected by the Annual General Meet-
ing, with the exception of the President. e member nominated by  Sys-
tems, George Rose, is an employee of  Systems and 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.
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
106 SAAB ANNUAL REPORT 2010