STOCKHOLM, March 30, 2021 /PRNewswire/ --
Telefonaktiebolaget LM Ericsson's (NASDAQ: ERIC) Annual General
Meeting (AGM) was held on March 30,
2021. Due to the COVID-19 pandemic, the AGM 2021 was
conducted without the physical presence of shareholders,
representatives and third parties and the shareholders were able to
exercise their voting rights only by post before the meeting. To
allow shareholders to listen to management and ask questions, the
Company also held an on-line shareholder event before the voting
deadline. The speeches by management from the event are available
on Company's website www.ericsson.com.
The proposed dividend of SEK 2.00
per share was approved by the AGM. The dividend will be paid in two
equal installments; SEK 1.00 per
share with the record date Thursday, April
1, 2021, and SEK 1.00 per
share with the record date Friday, October
1, 2021. Euroclear Sweden AB is expected to disburse
SEK 1.00 per share on Thursday, April 8, 2021, and SEK 1.00 per share on Wednesday, October 6, 2021.
Adoption of the Profit and Loss Statements and the Balance
The AGM resolved to adopt the Profit and Loss Statement and the
Balance Sheet for the Parent Company as well as the Consolidated
Profit and Loss Statement and the Consolidated Balance Sheet for
the Group for 2020.
The AGM resolved to adopt the Board of Directors' remuneration
report for 2020.
Discharge from liability
The members of the Board of Directors and the President were
discharged from liability for the financial year 2020.
Board of Directors
The AGM elected Board members in accordance with the proposal of
the Nomination Committee. Ronnie Leten was re-elected as Chair of
the Board and Jon Fredrik Baksaas, Jan
Carlson, Nora Denzel, Börje
Ekholm, Eric A. Elzvik, Kurt Jofs,
Ronnie Leten, Kristin S. Rinne,
Helena Stjernholm and Jacob Wallenberg were re-elected as Board
members. It was also noted that the unions have appointed Torbjörn
Nyman, Anders Ripa and Kjell-Åke
Soting employee representatives in the Board with Per Holmberg, Ulf
Rosberg and Loredana Roslund
Board of Directors' Fees
The AGM resolved on fees to the Board of Directors, in
accordance with the Nomination Committee's proposal. Yearly fee to
the Chair of the Board of SEK
4,225,000, and fees to other non-employee members of the
Board, elected by the AGM, of SEK
1,060,000 each. Fees for Committee work to non-employee
members of the Committees, elected by the AGM, were approved as
follows: SEK 420,000 to the Chair of
the Audit and Compliance Committee and SEK 270,000 to each of
the other members of the Audit and Compliance Committee,
SEK 205,000 to each of the Chairs of the Finance Committee,
the Remuneration Committee and the Technology and Science
Committee, and SEK 180,000 to each of the other members of the
Finance Committee, the Remuneration Committee and the Technology
and Science Committee.
The AGM approved the Nomination Committee's proposal to enable
payment of part of the fees to the members of the Board for the
Board assignment, in the form of synthetic shares.
The AGM elected Deloitte AB as auditor for the period up until
the end of the AGM 2022.
Amendment of the Articles of Association
The AGM resolved to amend the articles of association in
accordance with the Board of Directors' proposal in order to
facilitate and increase the flexibility in conducting General
Meetings of shareholders, including through introducing a
possibility of postal voting.
Long-Term Variable Compensation Program (LTV)
Long-Term Variable compensation program 2021 (LTV 2021)
In accordance with the Board of Directors' proposals, the AGM
resolved on implementation of LTV 2021 for the members of the
Executive Team (currently 15 individuals), comprising a maximum of
2.1 million B-shares in Ericsson. "Performance Share Awards" will
be granted free of charge entitling the participant to receive a
number of shares, free of charge, following the expiration of a
three-year vesting period, provided that certain performance
conditions are met and that the participant retains his or her
employment. The performance conditions are based on TSR (total
shareholder return) development during a three-year period
(absolute TSR-development and relative TSR-development) and a
one-year group operating income target for 2021. All targets have a
three-year vesting period. The Company has approximately 3.3
billion shares in issue. The 2.1 million B shares covered by LTV
2021 correspond to approximately 0.1 percent of the total number of
Furthermore, the AGM resolved to approve the Board of Directors'
proposal to hedge the company's undertakings under LTV 2021 through
an equity swap agreement with a third party.
Transfer of treasury stock for previously resolved LTV
The AGM resolved to approve the Board of Directors' proposal on
transfer of not more than 1.9 million treasury shares of
series B to employees under the previously resolved and ongoing LTV
2020 and not more than 600,000 treasury shares of series B on
Nasdaq Stockholm prior to the AGM 2022 to cover certain expenses,
mainly social security charges in relation to LTV 2020.
The AGM further resolved to approve the Board of Directors'
proposal on transfer of not more than 1.6 million shares of series
B on Nasdaq Stockholm prior to the AGM 2022 to cover certain
expenses, mainly social security charges, which may occur in
relation to previously resolved and ongoing LTV programs; LTV 2018
and LTV 2019.
Shares and votes
There are in total 3,334,151,735 shares in the Company;
261,755,983 shares of series A and 3,072,395,752 shares of series
B, corresponding to in total 568,995,558.2 votes. The Company's
holding of treasury stock as of March 30,
2021, amounts to 6,043,960 shares of series B, corresponding
to 604,396 votes.
NOTES TO EDITORS:
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FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Nyquist, Head of Investor
Phone: +46 705 75 29 06
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
Stefan Jelvin, Director, Investor Relations
Phone: +46 709 86 02 27
Peter Olofsson, Head of Corporate
Phone: +46 702 67 34 45
Phone: +46 10 719 69 92
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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The following files are available for download:
General Meeting 2021