Form 4: Autoliv Executive Magnus Jarlegren Reports Acquisition of Performance-Based and Standard Restricted Stock Units

Autoliv Inc.'s President of Autoliv Europe, Magnus Jarlegren, has reported the acquisition of various performance-based and standard restricted stock units as part of his compensation.

Summary

• Magnus Jarlegren, President of Autoliv Europe, reported the acquisition of derivative securities, specifically Restricted Stock Units (RSUs) and Performance-Based Restricted Stock Units (PBRSUs), on June 10, 2025.
• The acquired securities include 11.5268 Performance-Based RSUs from a 2023 grant, which will vest after the third one-year performance period ending December 31, 2025, subject to committee certification.
• An additional 4.1031 Performance-Based RSUs from a 2024 grant were acquired, vesting after the third one-year performance period ending December 31, 2026, also subject to committee certification.
• Standard Restricted Stock Units acquired include 3.8379 units vesting on February 15, 2026, 3.7643 units vesting on February 20, 2027, and 4.5548 units vesting on February 21, 2028.
• Each RSU represents a contingent right to receive one share of Autoliv Inc. common stock.
• Dividend equivalent rights accrued in the form of additional RSUs, subject to the same vesting schedule as the underlying RSUs.
• Following these transactions, Mr. Jarlegren beneficially owns 1,788.7941 Performance-Based RSUs (2023 Grant), 636.7359 Performance-Based RSUs (2024 Grant), 595.5827 standard RSUs (vesting 2026), 584.1614 standard RSUs (vesting 2027), and 706.8431 standard RSUs (vesting 2028).

Sentiment

Score: 5

Explanation: The document reports a routine executive compensation grant (RSUs), which is a neutral event for the company's immediate operational or financial performance. It reflects standard corporate governance and compensation practices.

Positives

• The acquisition of RSUs aligns the executive's interests with long-term shareholder value through equity-based compensation.
• The performance-based nature of some RSUs incentivizes the executive to achieve specific company performance objectives.

Negatives

• The issuance of RSUs, upon vesting, can lead to a slight dilution of existing shareholder equity, although this is a standard component of executive compensation plans.

Future Outlook

The document details future vesting schedules for various Restricted Stock Units, with performance-based units contingent on the completion of performance periods ending December 31, 2025, and December 31, 2026, and subsequent certification by the Leadership Development and Compensation Committee. Other standard RSUs are set to vest on specific dates in February 2026, 2027, and 2028.

Industry Context

This filing is a routine disclosure of executive equity compensation within the automotive safety systems industry. Such grants are common practice to incentivize and retain key management personnel, aligning their long-term financial interests with the company's performance and shareholder returns.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) and Performance-Based Restricted Stock Units (PBRSUs) as a component of executive compensation is a standard practice across various industries, including the automotive and manufacturing sectors, for companies like Autoliv Inc. (ALV), a leading global supplier of automotive safety systems.
• Companies such as Aptiv PLC (APTV), BorgWarner Inc. (BWA), and Magna International Inc. (MGA), which operate in related automotive supply chain segments, commonly utilize similar equity-based incentive programs for their executives.
• The structure of vesting over multiple years and tying a portion of the awards to performance objectives (e.g., through December 31, 2025, and December 31, 2026, performance periods) is consistent with best practices in corporate governance aimed at promoting long-term value creation and executive retention.

Stakeholder Impact

• Shareholders: The RSU grants represent a form of compensation that aligns executive interests with long-term shareholder value, but also imply potential future share dilution upon vesting.
• Employees: The compensation structure for executives can influence overall compensation philosophy and morale within the company.
• Management: The grants provide a significant incentive and retention mechanism for the executive, linking their personal financial success to the company's performance.

Next Steps

• The Leadership Development and Compensation Committee will certify the level of achievement of applicable performance objectives for the 2023 Performance-Based RSUs after December 31, 2025.
• The Leadership Development and Compensation Committee will certify the level of achievement of applicable performance objectives for the 2024 Performance-Based RSUs after December 31, 2026.
• Standard Restricted Stock Units are scheduled to vest on February 15, 2026, February 20, 2027, and February 21, 2028.

Key Dates

Keywords

Autoliv Inc., ALV, SEC Form 4, Restricted Stock Units, Performance-Based RSUs, Executive Compensation, Insider Transaction, Equity Grant, Beneficial Ownership