GOTEBORG, Sweden, April 5, 2002 (PRIMEZONE) -- The Board of AB Volvo (Nasdaq:VOLVY) has decided that the employee stock option program already established for senior executives in the Volvo Group will be continued. As in the past, the stock option program will be performance related. No options were allotted for 2001.
The new program comprises approximately 150 senior executives, compared with the 100 executives covered by the previous program. A maximum of 1,240,000 options may be allotted, of which President and CEO Leif Johansson will be entitled to receive a maximum of 50,000. The program for the preceding year comprised a maximum of 1,070,000 options, although none of these were allotted. The actual number of options that will be allotted to the participants will be based on the degree of fulfillment of specified financial goals for the year 2002. It is estimated that the options will be allotted in April or May 2003. The options will run for a term of five years and, during the final two of these years, each option will provide the holder with the right to acquire one Volvo Series B share at an exercise price corresponding to 100 percent of the share price at the time of allotment. For employees not resident in Sweden, each option provides the right to receive an amount in cash equal to the difference between the share price at the time of exercise and the exercise price.
The executives will not have to pay for the options. The options will not be transferable and should the executive resign during the term, the options will cease to be valid. The option program will only relate to currently existing shares.
Volvo will hedge its undertakings, including social security costs, against future share price increases. Additional information about the program will be provided in connection with allotment of the options in April or May 2003.
The Volvo Group is one of the world's leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications and aircraft engine components. The Group also provides complete solution for financing and service. The Group has about 71,000 employees, production in 25 countries and operations are carried out in more than 185 markets. Annual sales of the Volvo Group amount to nearly SEK 180 billion.
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