Securitas Ties Executive Pay to Climate Goals, Boosts Shareholder Payouts

STOCKHOLM, SWEDEN – March 26, 2026 – Global security leader Securitas AB today unveiled a multi-faceted strategic agenda ahead of its Annual General Meeting (AGM), proposing a significant dividend for shareholders while simultaneously introducing a revamped executive incentive program that formally links leadership pay to ambitious climate targets.

In its notice for the AGM scheduled on April 29, 2026, the Stockholm-based company outlined a series of key resolutions that will shape its financial and operational direction. The proposals include a generous dividend, a substantial share repurchase authorization, and a new long-term incentive (LTI) plan that marks a significant step in integrating Environmental, Social, and Governance (ESG) metrics into its core corporate strategy.

A Two-Pronged Approach to Shareholder Value

Securitas is signaling strong confidence in its financial health with a proposal to return significant value to its investors. The Board has proposed a dividend of SEK 5.30 per share for the 2025 financial year, a move that reflects the company's robust performance. This dividend is planned to be distributed in two equal installments of SEK 2.65 per share, with payments expected in May and November 2026.

This shareholder-friendly posture is underpinned by strong financial results. The company recently celebrated a major milestone, achieving an operating margin exceeding 8% in the latter half of 2025—a notable improvement from the roughly 5% margin it has maintained for over a decade. This performance provides a solid foundation for the proposed capital returns.

Further bolstering this strategy, the Board is seeking authorization to repurchase up to 10% of the company's own Series B shares. According to the company's notice, the purpose of this authorization is threefold: to adjust the company's capital structure, to finance potential acquisitions with company shares, and to cover costs associated with its share-based incentive programs. Such buyback programs can increase earnings per share (EPS) by reducing the number of outstanding shares, often leading to an appreciation in share value and signaling management’s belief that the stock is undervalued.

Linking Bonuses to Green Performance

Perhaps the most forward-looking proposal is the new long-term incentive program, LTI 2026/2028. This program, designed for approximately 90 top executives and key employees, fundamentally realigns compensation with the company's strategic priorities by tying performance awards to both financial and environmental metrics.

Under the proposed structure, 90% of the incentive will be based on the growth of the company's earnings per share—a shift from the previous focus on operating margin. The remaining 10% will be directly tied to the reduction of Securitas' greenhouse gas (GHG) emissions. This move codifies the company’s commitment to sustainability by creating a direct financial incentive for its leadership to drive environmental progress.

The credibility of this sustainability target is reinforced by its alignment with the Science Based Targets initiative (SBTi), a globally recognized body that validates corporate climate goals. Securitas has committed to a 42% reduction in its absolute Scope 1, 2, and 3 GHG emissions by 2030 from a 2022 baseline, a target consistent with the Paris Agreement's goal of limiting global warming to 1.5 degrees Celsius. The company was the first in the global security solutions industry to have its targets validated by SBTi, positioning it as a leader in corporate climate action.

The rationale provided by the Board states that the program aims to "create a strong long-term incentive for top executives," "strengthen the Group's ability to retain and recruit," and "align the interests of the shareholders with the interests of the executives." By integrating sustainability, the board believes the program will have a "positive effect on the long-term value growth and the sustainability of the Group."

Boardroom Dynamics and Governance Shifts

The AGM notice also sheds light on changes in the company's governance. The Nomination Committee has proposed the re-election of Jan Svensson as Chair of the Board, ensuring continuity in leadership. However, board member Harry Klagsbrun has declined re-election, opening a seat on the seven-member board. The remaining members—Åsa Bergman, Fredrik Cappelen, Massimo Grassi, Sofia Schörling Högberg, Johan Menckel, and Jill D. Smith—are all proposed for re-election.

In a notable move, the Nomination Committee has proposed an approximate 8% increase in total fees for the Board, bringing the total to SEK 12,745,000. The proposal details a fee of SEK 3,650,000 for the Chair and SEK 1,265,000 for each of the other members, with additional fees for committee work. Crucially, the committee stated its "expectation that part of the fee should be used to increase holdings of Securitas' shares among the Board members," further aligning the board's financial interests with those of the shareholders they represent.

Inside the New Incentive Program

The structure of the LTI 2026/2028 program requires a personal commitment from its participants. To be eligible, executives must invest between 5% and 15% of their base salary in Securitas shares, referred to as "Personally Invested Shares." For each share invested, the company will grant a number of "performance awards," with the CEO receiving five awards per share, other group management receiving four, and other key employees receiving three.

These awards will vest after a three-year measurement period (2026-2028), contingent upon the company meeting the predefined EPS and GHG reduction targets. The total estimated cost of the program, assuming full achievement of targets, is approximately SEK 204 million before tax, spread over the vesting period. The board has deemed this cost, which is expected to have a marginal effect on key financial ratios, to be outweighed by the positive effects of increased share ownership and performance alignment among its senior leadership.

Shareholders will convene in Stockholm on April 29 to vote on these proposals, which collectively represent a clear and comprehensive vision for Securitas' future—one that attempts to balance immediate financial returns with long-term, sustainable growth and responsible corporate citizenship.