Monday, 18 October 2010

Sweden: Code amendment proposed by Board

The Swedish Corporate Governance Board has announced its intention to make a change to its Code in respect of remuneration. Rule 9.8 of the Code (available here, pdf) currently provides:

Share- and share-price-related incentive programmes are to be designed with the aim of achieving increased alignment between the interests of the participating individual and the company’s shareholders. Programmes that involve acquisition of shares are to be designed so that a personal holding of shares in the company is promoted. The vesting period or the period from the commencement of an agreement to the date for acquisition of shares is to be no less than three years".

The Board is proposing - see here - that the above requirement regarding the vesting period should also include synthetic options and other share price related incentive programmes that do not involve the acquisition of shares.

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