Saab 2010 Annual Report Download - page 46

Remuneration to Board Members
Board Members, elected by Saab’s Shareholders’ Meeting, may in
special cases receive a fee for services performed within their respec-
tive areas of expertise, separately from their Board duties and for a
limited period of time. Compensation for these services shall be paid
at market terms.
Incentive programs proposed to the Annual
General Meeting 
e Board of Directors proposes that the Annual General Meeting
resolves on the implementation of a Share Matching Plan  and a
Performance Share Plan .
e terms and estimated costs for the Share Matching Plan 
and the Performance Share Plan  will be presented in the Board’s
complete proposal to the Annual General Meeting.
Deviation from the guidelines for remuneration for
senior executives 
On one occasion, the Board of Directors resolved to pay an extra
variable remuneration with a total amount of SEK , before
tax to two members of the Group Management to show appreciation
of their extraordinary eorts during .
SHARE REPURCHASE
Share repurchase
In April , Saab’s Annual General Meeting resolved to oer
employees the opportunity to participate in a voluntary share match-
ing plan where they can purchase Series B shares in Saab during a
-month period. Purchases are made through withdrawals of
between  and  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 corresponding number of Series B shares.
e plan was introduced in autumn  in Sweden and Norway.
In , it was expanded to include employees in Denmark, Germany,
the UK, the U.S., Switzerland and Australia, and in  it was
expanded again to cover employees in South Africa. In April ,
Saab’s Annual General Meeting resolved to introduce a performance-
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.
e Annual General Meetings in  and  resolved to
renew the share matching plan and performance share plan.
In , Saab repurchased  million shares and in  and 
it repurchased ,, shares per year to hedge the plans.
e Annual General Meeting on  April  resolved to renew
the Board of Directors’ mandate to decide to repurchase up to  per
cent of the company’s shares, of which ,, shares to hedge the
year’s 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 acquisi-
tions 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 man-
date 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.
Saab announced on  June  that the Board has decided to
utilise its authorisation for repurchases to hedge the company’s share
matching plan and performance share plan. Between  July and 
August , , shares were acquired on NASDAQ OMX Stock-
holm at a total cost of MSEK . On  December , Saab held
,, shares as treasury stock, which was , more shares
than at year-end .
DIVIDEND
e Board of Directors proposes that shareholders receive a divi-
dend of SEK . per share (.), or a total of MSEK  (). 
April has been proposed as the record day for the dividend, which is
expected to be paid on  April .
EVENTS AFTER THE BALANCE SHEET DATE
• An order was received from FMV regarding development of the existing
materiel system in Gripen C/D 39 (edition 19). The order amount is MSEK
127. The work will be carried out in 2011 and 2012.
• An order was received for the weapon locating system ARTHUR from LIG
Nex1 which is the prime contractor for the Defence Acquisition Program
Administration, Republic of Korea. The order sum is MSEK 450.
• Saab announced that the Nomination Committee proposes Håkan
Buskhe and Michael O’Callaghan for election to the Saab Board of Direc-
tors. Marcus Wallenberg, Johan Forssell, Sten Jakobsson, Per-Arne
Sandström, Cecilia Stegö Chilò, Åke Svensson, Lena Treschow Torell and
Joakim Westh are proposed for re-election. Marcus Wallenberg is pro-
posed as Chairman of the Board. Erik Belfrage and George Rose have
declined re-election. The Nomination Committee also proposes that the
accounting firm PricewaterhouseCoopers AB is elected as new auditor
for a term of four years.
• Saab announced it had signed an agreement to acquire assets from the
Czech company E-COM, whose main operations are in the development
and production of virtual simulators. The acquisition strengthens Saab’s
product portfolio in training and simulation with a number of new capabili-
ties and services within the virtual domain. The acquisition of assets from
E-COM is expected to have no material effect on Saab’s consolidated
financial statements in 2011.
No other signicant events have occurred aer the balance sheet
date that aect Saab’s results of operations and nancial position.
SAAB ANNUAL REPORT 2010 43
ADMINISTRATION REPORT