The Board of Directors proposes a dividend for 2014 of SEK 6.50 (6.50) per share, for a total dividend payment of approximately SEK 1,861m (1,861). The proposed dividend corresponds to approximately 57% (66) of income for the period, excluding items affecting comparability. Monday, March 30, 2015, is proposed as record date for the dividend.
The Group’s goal is for the dividend to correspond to at least 30% of income for the period, excluding items affecting comparability. Historically, the Electrolux dividend rate has been considerably higher than 30%. Electrolux has a long tradition of high total distribution to shareholders that includes repurchases and redemptions of shares.
Electrolux has previously, on the basis of authorizations by the AGM, acquired own shares. The purpose of the repurchase programs has been to adapt the Group’s capital structure, thus contributing to increased shareholder value and to use these shares to finance potential company acquisitions and as a hedge for the company’s share-related incentive programs.
In accordance with the proposal by the Board of Directors, the AGM 2014 decided to authorize the Board for the period until the 2015 AGM to resolve on acquisitions of shares in the company and that the company may acquire as a maximum so many Class B shares that, following each acquisition, the company holds at a maximum 10% of all shares issued by the company.
The Board of Directors makes the assessment that it continues to be advantageous for the company to be able to adapt the company’s capital structure, thereby contributing to increased shareholder value, and to continue to be able to use repurchased shares on account of potential company acquisitions and the company’s share-related incentive programs.
The Board of Directors proposes that the AGM 2015 resolves on a renewed mandate to repurchase own shares equivalent to the previous mandate.
As of December 31, 2014, Electrolux holds 22,599,884 Class B shares in Electrolux, corresponding to 7.3% of the total number of shares in the company.
| Outstanding A shares | Outstanding B shares | Outstanding shares, total | Shares held by Electrolux | Shares held by other shareholders | |
|---|---|---|---|---|---|
| Number of shares as of January 1, 2014 | 8,192,539 | 300,727,769 | 308,920,308 | 22,708,321 | 286,211,987 |
| Shares alloted to senior managers under the Performance Share Program | — | — | — | –108,437 | 108.437 |
| Total number of shares as of December 31, 2014 | 8,192,539 | 300,727,769 | 308,920,308 | 22,599,884 | 286,320,424 |
| As % of total number of shares | 7.3% |
Electrolux distribution to shareholders include repurchases and redemptions of shares as well as dividends. In 2006, the Group’s outdoor operations, Husqvarna, were distributed to shareholders. No dividend was paid for 2008, as a consequence of the low income for the period and the uncertainty in the market for 2009.