In the four years since Russia's attack on Ukraine, when countries began to reconsider their defenses, Saab has become the company on everyone's lips. The share price has increased tenfold in four years.
Saab has had a share savings program for many years, aimed at all employees. Anyone who sets aside part of their salary and buys Saab shares receives an equal number of free shares from their employer after three years.
And whoever has done so has been richly rewarded.
“Very high participation rate”
According to Saab's statistics, approximately 8,000-11,000 employees have participated in the bonus program annually.
Lars Svensson, chairman of the academic association at Saab in Gothenburg, does not have any idea exactly how many people have signed up or how much money is involved.
But I know there has been a very high level of participation, says Lars Svensson, who himself joined the program.
45,000 became 900,000
A calculation example: An engineer who earns SEK 75,000 a month or SEK 900,000 a year, and who set aside part of their salary to buy Saab shares for SEK 45,000 in 2022, can now see that their investment has grown to approximately SEK 900,000, including the free shares. And that's just from a one-year contribution to the bonus program; the program can be used every year even if the price trend has been lower in recent years.
From the company's point of view, there is of course a loyalty purpose to the program. You must remain with the company for at least three years to receive the free shares.
So it's something that aims to get loyal employees who stay and do a good job. Most people think that's a pretty good deal.
Is this something people talk about in coffee shops?
Yes, but in the same way that you don't talk about your salary, you don't sit around and discuss exactly how much you have invested in shares, says Lars Svensson.
Variable salaries more common
Saab's share price development has been exceptional. And there is a debate, generally in union circles, about whether variable salaries are trending upwards and whether this is something to watch. Not everyone has participated in the savings program either.
But that discussion has not taken place at Saab, as far as Lars Svensson knows.
It's not something I can say I've experienced.
Otherwise, share-based bonus programs for all employees have decreased in scope. In the early 2000s, six out of ten (62 percent) programs were aimed at all employees in listed companies. Last year, that figure was 16 percent, according to the accounting firm PWC.
Olle Lindström/TT
Facts: How the bonus program works
TT
All Saab employees are welcome to participate. Saab currently has approximately 28,000 employees globally, a figure that has increased by 10,000 since the beginning of 2022.
You may save a maximum of five percent of your fixed gross salary to buy Saab shares.
If you remain in the company after three years, Saab will award you as many free shares as you have purchased yourself.
The number of participants in the annual programs has been:
2021, approximately 8,100
2022, approximately 8,100
2023, approximately 8,900
2024, approximately 11,000
Source: Saab
