27 apr 2000
Stockholm - April 27, 2000 - At the board meeting today, the Board of Directors of Atlas Copco AB decided to implement a worldwide stock option plan aimed at key employees in the Group. This program replaces the present option plan that was launched 1997.
The purpose of the option plan is to attract, retain and motivate key employees by having a long-term incentive plan that provides benefits linked to share-price development.
In 2000, the extended plan includes 200 employees in the Atlas Copco Group. The stock options granted will give entitlement to acquire Atlas Copco A shares at an exercise price corresponding to 110 % of the average share-price over a reference period close to date of grant. They will be vested over a period of three years, at the rate of 1/3 per year, and will have a term of six years.
The stock options are granted free of charge and are not transferable. If employment is terminated, the options expire. Vested options are generally exercisable one month after termination of employment.
Since the stock options offer entitlement to acquire existing shares, there will be no dilution for Atlas Copco shareholders. A total of approximately 770,000 shares will be required to cover the options to be granted in 2000, including the social security charges that will be payable upon exercise of the options. The cost of the stock option program is hedged.
Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 1999, the Group had revenues of SEK 36 billion, with 97 percent of revenues outside Sweden, and over 26,000 employees. Atlas Copco companies develop, manufacture, and market electric and pneumatic tools, compressed air equipment and generators, construction and mining equipment, assembly systems, and offer related service and equipment rental. More information is available on www.atlascopco.com.