Saab 2013 Annual Report Download - page 60

56 SAAB ANNUAL REPORT 2013
ADMINISTRATION REPORT > OTHER INFORMATION
2005 that are terminated by Saab, a maximum severance payment of
18 months is payable following a six-month notice period.
In both cases, any income from termination and/or severance pay
will be deducted against income from other employment during the
corresponding period.
Consultant fees to Board Members
Saab AB’s shareholder-elected Board Members may in special
cases receive a fee for services performed within their respective
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 programmes proposed to the 2013 Annual General
Meeting
e Board of Directors proposed that the Annual General
Meeting resolve to adopt the 2013 Share Matching Plan and 2013
Performance Share Plan. e Annual General Meeting resolved in
accordance with the Board’s proposal.
Note 37 of the Annual Report includes a description of existing
remunerations for senior executives, including xed and variable
compensation, long-term incentive programmes and other benets.
Board of Directors proposal for guidelines for remuneration
and other terms of employment for senior executives,
applicable as of the next Annual General Meeting
e Remuneration Committee has evaluated the application of the
guidelines for remuneration for Saab AB senior executives resolved
at the 2013 Annual General Meeting and the current remuneration
structures and remuneration levels in the company. e Remunera-
tion Committee deems that the guidelines resolved in 2013 achieve
their purposes of facilitating the recruitment and retention of senior
executives.
e Remuneration Committee has recommended the Board of
Directors to propose that the Annual General Meeting adopt
remuneration guidelines with terms and conditions identical to
those that were adopted by the 2013 Annual General Meeting.
In light of the above, the Board of Directors proposes that the
2013 Annual General Meeting adopt guidelines for remuneration
and other terms of employment for senior executives with terms
and conditions identical to those resolved at the 2013 Annual
General Meeting (please see above).
Incentive programmes proposed to the Annual General Mee-
ting 2014
e Board of Directors proposed that the Annual General Mee-
ting resolved on the implementation of a Share Matching Plan
2014 and a Performance Share Plan 2014.
e terms and estimated costs for the Share Matching Plan
2014 and the Performance Share Plan 2014 are presented in the
Board of Director’s complete proposal to the Annual General
Meeting.
Saab’s long-term incentive programmes and authorisation to
repurchase own shares
In April 2007, Saab’s Annual General Meeting resolved to oer
employees the opportunity to participate in a voluntary share
matching plan under which they can purchase Saab Series B
shares over 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 corresponding number of Series B
shares free of charge.
e plan was introduced in autumn 2007 in Sweden and Nor-
way. In 2008 it was expanded to include employees in Denmark,
OTHER SIGNIFICANT EVENTS IN 2013
• On February 15th, the Swedish Defence Ma-
terial Administration (FMV) and Saab entered
into agreement regarding development and
modification of the Gripen E for Sweden
through the period 2013–2026 as well as a
potential order for production of Gripen E for
Switzerland. The agreement comprises po-
tential orders of SEK 47.2 billion in total.
• Lena Olving, formerly Saab AB’s Executive
Vice President and Chief Operating Officer
(COO), stepped down at the end of the sec-
ond quarter 2013 to become President and
CEO of the listed technology company Mi-
cronic Mydata AB.
• Saab AB held its Annual General Meeting in
Stockholm on 17 April 2013. In accordance
with the Nomination Committee’s proposal,
Håkan Buskhe, Johan Forssell, Sten Jakobs-
son, Per-Arne Sandström, Cecilia Stegö
Chilò, Lena Treschow Torell, Marcus Wallen-
berg and Joakim Westh were re-elected as
board members. Sara Mazur was elected as
a new board member. Marcus Wallenberg
was re-elected as Chairman of the Board. At
the statutory board meeting following the
AGM, Sten Jakobsson was elected Vice
Chairman of the Board.
• In April Saab announced that the Danish Su-
preme Court had ordered it to repay the Dan-
ish Defence Materiel Administration (FMT)
and to reimburse FMT’s court costs. The dis-
pute was based on a cancelled contract con-
cerning the DACCIS command and control
system. The judgment amount comprised re-
payment of the damages awarded Saab by
the Danish Maritime and Commercial Court
in 2010, payments received under the DAC-
CIS contract and interest and court costs.
The expense amounting to MSEK 314 was
charged to earnings during the second quar-
ter of 2013.
• Saab announced in May that it had acquired
TIKAB (Teknikinformation i Krokom AB). The
acquisition broadens Saab’s service portfolio
and enables Saab to offer a more complete
range of technical services that further
strengthen the company’s competitiveness as
a supplier of support solutions.
• In September Saab opened union negotia-
tions to reduce the number of employees in
business area Dynamics in Karlskoga. The
layoff notice applied to 70 positions at the
Karlskoga production division and was due to
declining order intake resulting from reduced
global defence spending.
• Saab announced in September that it had
acquired Hydro-Lek Limited, a British manu-
facturer of remote handling systems and tools
for underwater vehicles, with 25 employees.
The acquisition strengthens Saab’s product
portfolio of remote-controlled, autonomous
and hybrid underwater vehicles. Saab’s am-
bition is to continue to grow the company.
• In September Saab announced that the work-
force would be reduced by 150-175 employ-
ees within business area Electronic Defence
Systems in Gothenburg. This was accom-
plished through a skills exchange programme
and was the result of reduced business vol-
umes and the ongoing technology shift.
• Saab announced the shareholder representa-
tives who, together with the Chairman of the
Board, constitute the Nomination Committee
for the 2014 Annual General Meeting: