STOCKHOLM, Sweden, Feb. 14, 2003 (PRIMEZONE) -- The Board of Directors of Investor AB (Other OTC:IVSBF) has decided on the company's employee stock option program for 2003. The program, which covers all employees, is based on the same structure as the employee stock option programs that have existed for all personnel since 2000 (see Investor's Annual Report for 2001). Investor strives to offer compensation in line with market conditions that makes it possible to recruit senior executives and other employees and keep them in the company. Employee compensation is adapted to Investor's underlying operations and normally consists of fixed salary, variable salary, variable long-term incentive programs (including the employee stock option program) and a pension (which for senior executives consists mainly of a defined-contribution pension plan).
The strike price for the 2003 employee stock option program has been set at SEK 52.50 per share, corresponding to the closing price of the Investor share on the first trading day after the release of Investor's Year-end Report for 2002 plus 10 percent. The program comprises 3.7 million options (corresponding to as many underlying shares). The term is seven years, during which the options will gradually become available over a three-year period. The theoretical value of an option is SEK 8.21 and the theoretical value of the entire program is SEK 30 million.
Exposure to increases in the share price, including any social security fees, is hedged by means of hedge contracts from earlier. The annual cost of these contracts amounts to an interest expense based on the value of the underlying shares, less the dividend on the underlying shares. No new shares will be issued as a result of the employee stock option program. The theoretical dilution for the 2003 employee stock option program amounts to 0.48 percent. The total theoretical dilution for all outstanding employee stock option programs amounts to 1.3 percent.
For further information:
Lars Wedenborn, Executive Vice President and CFO +46 8 614 2141, +46 70 624 2141 Fredrik Hillelson, Managing Director, Human Resources +46 8 614 2195, +46 70 624 2195 Fredrik Lindgren, Vice President, Corporate Communications +46 8 614 2031, +46 70 624 2031
Our press releases can be accessed at www.investorab.com on the Internet.
Investor AB is Sweden's largest listed industrial holding company. The company's business concept is to create shareholder value through long- term committed ownership and investment activities. Investor is a leading shareholder in a number of public multinational companies, including AstraZeneca, Ericsson and SEB. Investor also conducts venture capital activities in North America, Europe and Asia.
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