At an extraordinary general meeting of Ahlsell held on 16 October 2016, Ahlsell’s shareholders resolved to introduce two long-term incentive programmes.
- A share saving program directed at senior executives including Group Management and some additional key employees.
- A warrants program directed at ten senior executives including Group Management.
With the assistance of third party experts, the board of directors has conducted a thorough evaluation of the remuneration structure in the Company following a listing on Nasdaq Stockholm with the aim to ensure that incentives offered are in line with market practice and are competitive.
The purpose of the incentive programmes is to encourage wide ownership of the Company’s shares among the Company’s key employees, recruit and retain highly qualified and talented employees, increase the link between the goals of key employees and those of the Company, and increase motivation. The programmes have been structured with the purpose of finding a balance between the risk taken by key employees through the requirement to invest his or her own savings in the Company and the opportunity for key employees to receive a performancebased allotment of shares and/or the opportunity to subscribe for new shares.
The programmes corresponds to investments by the key employees of a total of approximately SEK 150 million1 of own funds. The maximum single investment was approximately SEK 10 million. Ahlsell will not assist with the individual financing of the investments and thus the investment creates a substantial financial commitment by key employees. Also, a portion of the key employee’s remuneration is linked to Ahlsell’s long-term performance and shares, and therefore the key employee will have the same objectives as the Company’s shareholders. The overall assessment of the board is that the incentive programmes are suitable to achieve their purpose.
The estimated costs of advice and administration linked to the long term incentive programmes are approximately SEK 5 million.
Updated information (in Swedish).