SEB introduces an employee option-programme for 400 executives
SEB introduces an employee option-programme for 400 executives The board of SEB has decided to expand its employee option programme. Group Management received options. Now allocation will be made to four hundred leading executives within the SEB Group. The employee option- programme follows the taxation criteria set out in the taxation rules introduced on 1 July 1998 (SFS 1998:337). The aim of the programme is to achieve commitment and interest in the development of SEB's shares. Including the allocation of options to Group Management, the number of allocated options in connection with the programme for the year 2000 will be approximately 6,000,000. The general allocation will have a value calculated at approximately 15 per cent of basic salary. The programme is based upon existing shares. Therefore, there will be no dilution effect so far as present shareholders are concerned. The option programme is secured in such a way that future increases in the value of SEB shares will not affect the cost of the programme for SEB. As regards taxation, employee options are ranked on a par with salary. This means that the individuals concerned will be taxed in the same way as for income tax when the options are utilised and social costs for SEB will be payable at that juncture. Allocation of employee options has been implemented to replace the value of former corresponding bonus systems and similar forms of remuneration. More information on the staff option programme: Each employee option entitles the holder to acquire one SEB series-A share at a price of SEK 91.50. The price of acquisition of the SEB share is calculated at 110 per cent of the average stock market price during the fortnight following presentation of the annual report of SEB on 15 February. Utilisation of employee options may only take place between the years 2003 - 2007; i.e. utilisation of the options is frozen for the three years immediately following the options having been issued. In order to secure SEB against the effect that share-price increases might have upon employee options, the options, including social costs, have been hedged by means of a third-party derivative-contract. By means of this the costs for SEB are limited as regards share-price increases as opposed to the difference between interest costs and dividends for those underlying shares in the derivative-contract at the same time as there is a certain exposure against an eventual drop in share prices. Distribution of the options will be taken up in the annual report. For further information, please contact: Anders Rydin, Chief Financial Officer (elect) Telephone: +46 8 763 82 09 Boo Ehlin, Head of External Communications Telephone: +46 8 763 85 77 or +46 70 763 85 77 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/07/20000307BIT00810/bit0001.doc http://www.bit.se/bitonline/2000/03/07/20000307BIT00810/bit0002.pdf