Form 4: Autoliv Executive Receives Stock Awards as Part of Compensation Plan

Autoliv's Executive Vice President, Anthony J. Nellis, received performance-based and regular restricted stock units as part of his compensation.

Summary

• Anthony J. Nellis, Executive Vice President and General Counsel at Autoliv, Inc., received several grants of restricted stock units (RSUs) on December 19, 2024.
• These grants include performance-based RSUs from the 2022 and 2023 programs, as well as regular RSUs.
• The performance-based RSUs will vest after the completion of the third one-year performance period and certification by the Leadership Development and Compensation Committee.
• The regular RSUs have various vesting dates in 2025, 2026 and 2027.
• The number of RSUs granted was 10,8638 for the 2022 performance-based grant, 9.3975 for the 2023 performance-based grant, 4.1945 for the 2025 vesting grant, 4.9202 for the 2026 vesting grant and 6.1348 for the 2027 vesting grant.
• Each RSU represents a contingent right to receive one share of Autoliv common stock.
• Dividend equivalent rights accrue in the form of additional RSUs.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally viewed positively as it aligns executive interests with company performance. There are no negative implications.

Positives

• The granting of RSUs aligns executive compensation with company performance and long-term value creation.
• The vesting schedule of the RSUs encourages long-term commitment from the executive.
• The inclusion of performance-based RSUs incentivizes the executive to achieve specific performance goals.

Risks

• The value of the RSUs is dependent on the future stock price of Autoliv, which is subject to market fluctuations.
• The performance-based RSUs are contingent on the company achieving specific performance objectives, which may not be met.

Future Outlook

The document does not contain any specific forward-looking statements about the company's future performance, but the vesting of the performance-based RSUs is contingent on the company's performance over the next few years.

Industry Context

This type of stock-based compensation is common practice for publicly traded companies to incentivize and retain key executives.

Comparison to Industry Standards

• Stock-based compensation is a standard practice across the automotive and manufacturing industries.
• Companies like Aptiv, Magna International, and Lear Corporation also use similar RSU programs to align executive interests with shareholder value.
• The vesting schedules and performance metrics are likely comparable to those used by peer companies.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they align executive interests with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Next Steps

• The performance-based RSUs will vest after the completion of the performance period and certification by the Leadership Development and Compensation Committee.
• The regular RSUs will vest on their respective vesting dates.

Key Dates

Keywords

Restricted Stock Units, RSU, Executive Compensation, Stock Awards, Performance-Based, Autoliv, ALV, Anthony J. Nellis