Form 4: Autoliv Executive Jordi Lombarte Reports Acquisition of Performance-Based Restricted Stock Units

EVP & Chief Technology Officer of Autoliv, Jordi Lombarte, reports the acquisition of performance-based restricted stock units and restricted stock units.

Summary

• Jordi Lombarte, EVP & Chief Technology Officer of Autoliv Inc., filed a Form 4 on June 13, 2024, reporting transactions related to derivative securities.
• The transactions involved the acquisition of performance-based restricted stock units (RSUs) from the 2022 and 2023 grants, as well as restricted stock units.
• These RSUs represent a contingent right to receive one share of Autoliv (ALV) common stock.
• Dividend equivalent rights accrued in the form of additional RSUs, subject to the same vesting schedule as the underlying RSUs.
• The performance-based RSUs from the 2022 grant vest after the completion of the third one-year performance period ending December 31, 2024, pending certification by the Leadership Development and Compensation Committee.
• The performance-based RSUs from the 2023 grant vest after the completion of the third one-year performance period ending December 31, 2025, pending certification by the Leadership Development and Compensation Committee.
• The reporting person directly owns 1,406.1955 common stock related to the 2022 grant, 1,107.0906 common stock related to the 2023 grant, 542.9326 common stock related to restricted stock units vesting 02/21/2025, 578.588 common stock related to restricted stock units vesting 02/15/2026 and 454.1963 common stock related to restricted stock units vesting 02/20/2027.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns executive interests with company performance.

Positives

• The acquisition of RSUs aligns the executive's interests with the company's performance and shareholder value.
• The vesting of performance-based RSUs is tied to the achievement of specific performance objectives, incentivizing strong performance.

Risks

• The value of the RSUs is contingent on Autoliv's stock price and the achievement of performance objectives.
• The Leadership Development and Compensation Committee's certification is required for the vesting of performance-based RSUs, introducing an element of uncertainty.

Future Outlook

The executive's compensation is tied to the future performance of Autoliv, incentivizing efforts to improve company results.

Industry Context

Executive compensation through stock-based awards is a common practice in the automotive industry to align management's interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies like Autoliv, comparable to companies such as Aptiv, Magna International, and Veoneer.
• The vesting schedules and performance metrics associated with the RSUs are likely aligned with industry norms for executive compensation.

Stakeholder Impact

• Shareholders may view the executive's acquisition of RSUs positively, as it aligns their interests with the company's success.
• Employees may be motivated by the performance-based nature of the RSUs, as it reinforces the importance of achieving company goals.

Next Steps

• The Leadership Development and Compensation Committee will certify the achievement of performance objectives for the 2022 and 2023 performance-based RSUs.
• The RSUs will vest according to the specified schedules, contingent on meeting the performance criteria and continued employment.

Key Dates