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

EVP & Chief Technology Officer of Autoliv, Jordi Lombarte, reports the acquisition of performance-based and regular restricted stock units (RSUs) as dividend equivalents.

Summary

• Jordi Lombarte, EVP & Chief Technology Officer of Autoliv, reported the acquisition of several restricted stock units (RSUs) on March 27, 2024.
• These RSUs include performance-based units from the 2022 and 2023 grants, as well as regular RSUs.
• The acquisitions are due to dividend equivalent rights accrued in the form of additional RSUs.
• The performance-based RSUs will vest after the completion of the three-year performance period and certification by the Leadership Development and Compensation Committee.
• Following the reported transactions, Lombarte beneficially owns 1,397.8494 performance-based restricted stock units from the 2022 grant, 1,100.5198 performance-based restricted stock units from the 2023 grant, 539.7102 restricted stock units vesting 02/21/2025, 575.1539 restricted stock units vesting 02/15/2026 and 451.5006 restricted stock units vesting 02/20/2027.

Sentiment

Score: 6

Explanation: The document is neutral, simply reporting the acquisition of RSUs. The sentiment is slightly positive as it reflects ongoing compensation and alignment of executive interests with shareholders.

Positives

• The acquisition of RSUs as dividend equivalents suggests confidence in the company's future performance.
• The vesting of performance-based RSUs is tied to the achievement of performance objectives, aligning executive compensation with company goals.

Risks

• The value of the RSUs is contingent on the future stock price of Autoliv.
• The vesting of performance-based RSUs depends on the company's ability to meet the specified performance objectives.

Future Outlook

The vesting of performance-based RSUs is contingent upon the company's performance over the next few years, specifically until December 31, 2024 for the 2022 grant and December 31, 2025 for the 2023 grant.

Industry Context

Executive compensation in the automotive industry often includes stock-based awards to align management's interests with those of shareholders. RSUs are a common component of these packages.

Stakeholder Impact

• The acquisition of RSUs has a minor positive impact on shareholders as it aligns executive compensation with company performance.
• Employees may view the RSU grants as a positive sign of the company's commitment to its executives.

Next Steps

• The Leadership Development and Compensation Committee will certify the level of achievement of the applicable performance objectives for the performance-based RSUs.
• The RSUs will vest according to their respective vesting schedules.

Key Dates