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The Board of Mekonomen AB proposes a long-term share-based incentive program

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The Board of Mekonomen Aktiebolag has decided to propose to the Annual General Meeting that it resolves to establish a long-term share-based incentive program (“LTIP 2018”). LTIP 2018 comprises a maximum of 16 employees, including the company management in Mekonomen AB and certain other key employees in the Group.

 The fundamental reason for establishing LTIP 2018 is to align the shareholders' interests with the interests of the company management and other key employees to ensure maximum long-term value creation and to encourage a personal shareholding in Mekonomen AB. In addition, the Board is of the opinion that LTIP 2018 will help Mekonomen AB to recruit and retain members of the company management and other key employees.

The incentive program in brief:

  • Participation in LTIP 2018 requires that the participant has a personal shareholding in Mekonomen AB that is allocated to LTIP 2018. The CEO of Mekonomen AB can invest a maximum of 2,250 shares in Mekonomen AB and other participants can invest a maximum of 800 shares in Mekonomen AB in LTIP 2018.
  • After the vesting period, the participants will be allocated shares in Mekonomen AB free of charge, provided that certain conditions are met. These conditions are linked to continued employment in the Mekonomen Group until the announcement of the Mekonomen AB’s interim report for the first quarter of 2021, a personal shareholding in Mekonomen AB during the period, and certain financial key ratios and performance targets that apply during the financial years 2018-2020. The financial key ratios and performance targets refers to the total shareholder return on Mekonomen AB's share during the measurement period, the equity/assets ratio of Mekonomen AB and growth in earnings per share in Mekonomen AB during the measurement period compared to earnings per share for the financial year 2017.
  • The maximum number of shares in Mekonomen AB that can be allocated under LTIP 2018 shall be limited to 85,000.
  • The annual cost for LTIP 2018 is estimated to approximately MSEK 2.2 (including costs for social security contributions of approximately MSEK 1.0), based on the assumptions of an average achievement of the performance targets of 50 per cent, an annual employee turnover of 10 per cent, an annual increase in the share price by 10 per cent, and average social security contributions of 33 per cent. With an assumption of achievement of the performance targets of 100 per cent, the annual cost is instead expected to approximately MSEK 3.1 (including costs for social security contributions of approximately MSEK 1.3).

The Board’s proposal will be presented in the notice to the Annual General Meeting of Mekonomen AB, which will be held 9 May 2018 in Stockholm. The notice will be published shortly.

For further information, please contact:

John S. Quinn, Chairman of the Board
Tel: +46 (0)8- 464 00 00

Malin Persson, Chairman of the Remuneration Committee
Tel: +46 (0)8- 464 00 00

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