Insights from Sinch AB's Extraordinary General Meeting and New Incentive Program

Sinch AB's Extraordinary General Meeting: Key Resolutions and New Initiatives

On August 14, 2025, Sinch AB (publ) convened an extraordinary general meeting in Stockholm, where significant decisions were made regarding the future of the organization. This meeting was pivotal as it set the tone for the company's direction, especially in terms of employee engagement and motivation.

Long-Term Incentive Program (LTI 2025)

The board of directors proposed the initiation of a Long-Term Incentive Program (LTI 2025), designed to benefit up to 625 senior executives, key personnel, and future employees within the Sinch group. This program is particularly noteworthy as it aims to strengthen the link between employee performance and the company's growth, facilitating a sense of ownership among the workforce.

LTI 2025 will comprise a total of 12,800,000 employee stock options, which are divided into two distinct series: Series 1 for employees working outside Sweden and Series 2 for those based in Sweden. What makes this offering appealing is that the stock options are allotted to participants at no cost. Each stock option offers the right to acquire one share at a price corresponding to Sinch's market value at the time the option is granted, aligning the interests of employees and shareholders.

However, it's important to note that these stock options will be subject to specific performance and time-based vesting conditions. This means that participants will only fully benefit from these options if they meet certain performance metrics and remain with the company for a stipulated duration.

Share Buyback Proposal Declined

Although the board's proposal for authorization to acquire its own shares and transfer them to LTI 2025 participants was presented, it did not garner the necessary majority approval during the meeting. This outcome reflects the varied opinions among stakeholders regarding the optimal use of company funds and the strategy for shareholder returns.

As a result, an alternative resolution was passed, allowing Sinch to manage the financial exposure associated with LTI 2025 through a market-based share swap agreement with a third party. This agreement enables the third party to acquire and transfer shares to employees participating in the program, ensuring that the intent of LTI 2025 is maintained without immediate financial strain on the company.

Sinch's Vision and Growth Trajectory

Sinch AB, a major player in the realm of customer communications, has established its reputation by providing cutting-edge mobile messaging, voice, and email solutions to over 175,000 businesses, including many tech giants. Founded in 2008, Sinch has shown steady profitability and growth, with headquarters in Stockholm and shares traded on NASDAQ Stockholm under the ticker SINCH.

The introduction of the LTI 2025 is not just a strategy to motivate current employees; it demonstrates Sinch's commitment to fostering a culture of performance, alignment, and accountability. By incentivizing its workforce, Sinch aims to catalyze innovation and improve customer experiences further.

For those interested in deeper insights or further information regarding Sinch AB and its recent developments, inquiries can be directed to Ola Elmeland, the Investor Relations Director. With his expertise, he can provide clarity on future company strategies and performance indicators.

In conclusion, Sinch AB's extraordinary general meeting encapsulates a crucial phase in the company's evolution, pointing towards a future rooted in ambitious goals powered by the enthusiasm and engagement of its human capital. The decisions made during this meeting will undoubtedly play a significant role in shaping the company's trajectory in the years to come.