17 jan 1997
Atlas Copco’s Board of Directors has decided to introduce an option plan as from 1997 which will provide the possibility of annual grants of call options on Atlas Copco shares. Initially, the plan will include 25-30 executives within the Group.
The size of the grant will be linked to the Group’s ability to add value to the Company and its shareholders. The options will only be granted when the Group’s operating cash flow, less Atlas Copco’s cost of capital, is positive.
The options will have a term of five years and give the optionholder the right to purchase existing shares. Accordingly, exercise of options will not result in any dilution of the holdings of current shareholders.
Since the option plan is financially hedged, the company’s cost is not affected by the development in the stock price. The maximum value of the annual grants of call options is approximately SEK 5 million.
Atlas Copco has engaged Aros Securities as financial advisor. For further information, please contact:
Hans Ola Meyer, Senior Vice President Treasurer, Atlas Copco AB
Tel: +46-8-743 82 92
Carl-Johan Wachtmeister, Senior Vice President Communications, Atlas Copco AB
Tel: +46-8-743 80 70, +46-70-543 8070