SWEDEN – Oatly Group, a global leader in oat drink manufacturing, has released the outcomes of its Annual General Meeting (AGM) held on May 15, 2024.
At the meeting, the shareholders made significant resolutions concerning the company’s governance, financial management, and employee incentive programs. They approved the company’s profit and loss account and balance sheet for the financial year 2023.
Despite a challenging financial year, the board decided not to distribute any dividends, opting instead to carry forward the financial results to support future growth and stability.
The board members and CEO were also discharged from liability for the financial year 2023, signaling shareholder confidence in the current management.
The number of board members was set at ten, with the re-election of Eric Melloul, Ann Chung, Hannah Jones, Frances Rathke, Bernard Hours, Yawen Wu, Lai Shu Tuen-Muk, and Xin Wang. Gregory S. Christenson was elected as a new member, and Eric Melloul was re-elected as chairperson.
“This composition is set to guide Oatly through its next phase of development with a blend of continuity and fresh perspectives.”
In addition, they approved the remuneration committee’s proposals for board and committee fees, ensuring competitive compensation aligned with industry standards.
Each non-employee board member will receive US$ 60,000 annually, with additional fees for committee chairs and members, reinforcing the importance of their roles in governance and oversight.
Ernst & Young Aktiebolag was re-elected as the company’s auditor for the upcoming year, maintaining continuity in financial auditing and compliance.
Significant amendments were made to the Long-Term Incentive Program (LTIP) 2021-2026. The changes were set to broaden the program’s reach and improve its allocation principles, ensuring equitable distribution of stock options and RSUs among current and future executives and key personnel.
Additionally, a stock option exchange program was approved, allowing senior key employees to exchange “underwater” stock options for new RSUs with special vesting conditions. The initiative is expected to enhance employee retention and reduce the need for further equity awards.
The AGM also approved an increase in the maximum number of share awards for board members from 35,000 to 140,000 annually, maintaining the total value cap at USD 140,000 per participant.
In order to fulfil the commitments arising from the share awards, the AGM also resolved to authorize the Company to assign the warrants of Series 2021-B to a third party or in another way dispose of the warrants of Series 2021-B.
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