Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Sandvik’s Board of Directors propose that the Annual General Meeting resolve on a long-term incentive program for 2013 (LTI 2013) encompassing approximately 350 senior executives and key individuals within the Group, on substantially the same terms and conditions as the 2011 and 2012 long-term incentive programs.
Participants are offered allotment of employee stock options that entitle the holder to acquire Sandvik shares after three years at a set exercise price, on condition that certain performance targets are met. For some executives in more senior positions, a personal investment in Sandvik shares will also be required to gain entitlement to allotment of employee stock options and matching rights which entitle the holder to acquire Sandvik shares after three years at a set exercise price.
LTI 2013 comprises a maximum of 12,000,000 Sandvik shares, corresponding to approximately 1% of the total number of shares in the company The Board of Directors does not at present intend to take measures to hedge the program to ensure the delivery of Sandvik shares. Assuming a share price of 100 SEK, expected volatility of 40% and a five-year term, the cost of LTI 2013 is estimated at approximately 241 MSEK.
Stockholm, 29 January 2013
Sandvik Aktiebolag (publ)
Sandvik AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08:15 CET on 29 January 2013.
For further information, please contact Magnus Larsson, Vice President Investor Relations, Sandvik AB, tel: +46 8 456 12 40, or Pär Altan, Vice President Group External Communications, Sandvik AB, tel: +46 8 456 12 37.
