Form 4: Autoliv Executive Granted Performance-Based Stock Units

Autoliv's President of Autoliv Europe, Magnus Jarlegren, was granted various restricted stock units and performance-based restricted stock units, vesting through 2028.

Summary

• Magnus Jarlegren, President of Autoliv Europe, received grants of Restricted Stock Units (RSUs) and Performance-Based Restricted Stock Units (PBRSUs).
• The grants occurred on December 10, 2025.
• A total of 1,813.857 Performance-Based RSUs (2023 Grant) were granted, vesting after the third one-year performance period ending December 31, 2025.
• A total of 645.6572 Performance-Based RSUs (2024 Grant) were granted, vesting after the third one-year performance period ending December 31, 2026.
• Additional RSUs were granted with vesting dates: 603.9274 units on February 15, 2026; 592.3461 units on February 20, 2027; 716.7468 units on February 20, 2028; and 7,507.0929 units on November 17, 2028.
• Each RSU represents a contingent right to receive one share of Autoliv common stock.
• Dividend equivalent rights accrue as additional RSUs, subject to the same vesting schedule as the underlying RSUs.
• Performance-based RSUs vest upon certification of performance objectives by the Leadership Development and Compensation Committee.

Sentiment

Score: 6

Explanation: The filing is neutral to slightly positive. It details routine executive compensation, which is an expected part of corporate governance. The performance-based nature of some grants aligns executive incentives with company performance, which is generally viewed favorably by investors.

Positives

• The grants align executive compensation with long-term company performance and shareholder interests through performance-based vesting conditions.
• The inclusion of dividend equivalent rights ensures that executives benefit from dividend payments, further aligning their interests with shareholders.

Risks

• The vesting of performance-based RSUs is contingent on achieving specific performance objectives, which may not be met.
• The value of the RSUs upon vesting is subject to the future market price of Autoliv common stock, introducing market risk.

Future Outlook

The vesting of performance-based restricted stock units is contingent upon the achievement of specific performance objectives over one-year periods ending December 31, 2025, and December 31, 2026, as certified by the Leadership Development and Compensation Committee. Other restricted stock units are scheduled to vest on specific dates through November 2028.

Industry Context

This filing reflects standard executive compensation practices within the automotive safety systems industry, where long-term incentive plans like RSUs and PBRSUs are commonly used to retain key talent and align management interests with shareholder value creation.

Stakeholder Impact

• Shareholders: Executive compensation through RSUs aligns management's long-term interests with shareholder value, particularly with performance-based vesting.
• Employees: The compensation structure for a senior executive may set a precedent or reflect the company's overall approach to executive incentives.

Next Steps

• The Leadership Development and Compensation Committee will certify the achievement level of applicable performance objectives for performance-based RSUs.
• RSUs will convert to shares upon their respective vesting dates through November 2028.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation in the form of restricted stock units and performance-based restricted stock units. While these grants align executive incentives with long-term company performance, they do not provide new material information regarding the company's operational or financial performance that would warrant a change in investment recommendation. The filing is an expected part of ongoing corporate governance and compensation practices.

Keywords

Autoliv, ALV, Form 4, Restricted Stock Units, RSU, Performance-Based RSUs, Executive Compensation, Insider Transaction, Stock Grant, Magnus Jarlegren