Form 4: Autoliv Executive Boosts Equity Holdings via RSU Accruals

Autoliv's EVP Legal and General Counsel, Anthony J. Nellis, reported the acquisition of additional restricted stock units and performance-based restricted stock units through dividend equivalent rights.

Summary

• Anthony J. Nellis, Autoliv Inc.'s EVP Legal and General Counsel, reported the acquisition of various derivative securities on December 10, 2025.
• The acquisitions include Performance-Based Restricted Stock Units (PBRSUs) from 2023 and 2024 grants, and several Restricted Stock Units (RSUs).
• These additional units were accrued as dividend equivalent rights, meaning cash dividends with a record date on or after the grant date and paid before the vesting date yield additional RSUs.
• The 2023 PBRSUs (14.3698 units) are contingent on performance through December 31, 2025, and Leadership Development and Compensation Committee certification.
• The 2024 PBRSUs (6.5099 units) are contingent on performance through December 31, 2026, and Leadership Development and Compensation Committee certification.
• Other RSUs acquired include 4.7899 units vesting on February 15, 2026; 5.9724 units vesting on February 20, 2027; 7.5134 units vesting on February 20, 2028; and 36.1812 units vesting on May 15, 2028.
• Following these transactions, Mr. Nellis beneficially owns 1,994.264 PBRSUs (2023 Grant), 903.4597 PBRSUs (2024 Grant), 664.7547 RSUs (vesting 2026), 828.8621 RSUs (vesting 2027), 1,042.7277 RSUs (vesting 2028), and 5,021.291 RSUs (vesting 2028).

Sentiment

Score: 6

Explanation: The filing indicates an increase in an executive's equity holdings through routine dividend equivalent rights, which is a neutral to slightly positive signal as it reinforces alignment with shareholder interests without being a direct open-market purchase.

Positives

• The acquisition of additional restricted stock units by a key executive, even through dividend equivalents, indicates a continued alignment of management's interests with those of shareholders.
• The structure of performance-based RSUs ties executive compensation directly to the company's achievement of specific performance objectives, incentivizing long-term value creation.

Future Outlook

The vesting schedules for the acquired restricted stock units extend through May 2028, indicating a long-term commitment of the executive to the company's future performance. Performance-based units are tied to specific objectives through December 2026, aligning future compensation with operational achievements.

Industry Context

Executive compensation often includes equity awards like RSUs and PBRSUs to align management incentives with shareholder value. The accrual of dividend equivalent rights on these awards is a common practice, ensuring that executives benefit from the company's dividend policy in proportion to their unvested equity holdings, further strengthening their long-term stake.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased alignment of executive compensation with shareholder interests through equity holdings and performance-based awards.
• Employees: No direct impact mentioned, but executive compensation structures can influence overall company culture and morale.

Next Steps

• Completion of the third one-year performance period for 2023 PBRSUs ending December 31, 2025, followed by certification of performance objectives by the Leadership Development and Compensation Committee.
• Vesting of various Restricted Stock Units on scheduled dates: February 15, 2026; February 20, 2027; February 20, 2028; and May 15, 2028.
• Completion of the third one-year performance period for 2024 PBRSUs ending December 31, 2026, followed by certification of performance objectives by the Leadership Development and Compensation Committee.

Key Dates

Keywords

Autoliv, ALV, SEC Form 4, Insider Transaction, Restricted Stock Units, Performance-Based RSUs, Executive Compensation, Equity Holdings, Dividend Equivalent Rights