STOCKHOLM, SWEDEN--(Marketwire - May 3, 2012) -
Telefonaktiebolaget LM Ericsson's Annual General Meeting was held on May
3, 2012 in Stockholm.
The proposed dividend of SEK 2.50 per share was adopted. The record day for
dividend was set to Tuesday, May 8, 2012. Payment from Euroclear Sweden AB
expected to take place on Friday, May 11, 2012.
Adoption of the Profit and Loss Statements and the Balance Sheets
The AGM resolved to adopt the Profit and Loss Statement and the Balance
for the Parent Company as well as the Consolidated Profit and Loss
the Consolidated Balance Sheet for the Group for 2011. The members of the
of Directors and the President were discharged from liability for the
Board of Directors
In accordance with the proposal of the Nomination Committee, Leif Johansson
re-elected Chairman of the Board of Directors and Roxanne S. Austin, Sir
L. Bonfield, Börje Ekholm, Ulf J. Johansson, Sverker Martin-Löf,
McKinstry, Anders Nyrén, Hans Vestberg, Michelangelo Volpi and Jacob
were re-elected to the Board. Alexander Izosimov was elected new member of
Board of Directors.
Board of Directors' Fees
The AGM approved the Nomination Committee's proposal for a yearly fee to
Chairman in the amount of SEK 3,750,000 (unchanged), and fees to
members of the Board, elected by the AGM, in the amount of SEK 875,000 each
(previously SEK 825,000).
Fees for Committee work to non-employed members of the Committees, elected
the AGM, were approved as follows (unchanged); SEK 350,000 to the Chairman
the Audit Committee and SEK 250,000 to each of the other members of the
Committee, SEK 200,000 to the Chairmen of the Finance and Remuneration
and SEK 175,000 to each of the other members of the Finance and
The AGM approved the Nomination Committee's proposal to enable payment of
of the fees to the Directors, in respect of the Board assignment, in the
The AGM also approved the proposal for an instruction for the Nomination
Committee to apply until the general meeting of shareholders resolves
The AGM elected PricewaterhouseCoopers AB auditor for the period up until
end of the AGM 2013.
Guidelines for Remuneration to Group Management
In accordance with the Board of Directors' proposal, the AGM resolved to
the guidelines for remuneration to Group Management.
Long-Term Variable Remuneration Program (LTV)
In accordance with the Board of Directors' proposals, the AGM resolved as
LTV 2012 and transfer of treasury stock, directed share issue and
· Implementation of LTV 2012, with the same structure as
programs. The program comprises in total up to 31.7 million B shares and
includes the Stock Purchase Plan for all employees, the Key Contributor
Retention Plan and the Executive Performance Stock Plan. All plans are
the employees' own investment in Ericsson shares. If the shares are
a period of three years and the employment remains, the participants obtain
matching shares from the company. The following performance criteria were
resolved for the Executive Performance Stock Plan 2012; net sales compound
annual growth rate between 2 and 8 percent (2011-2014), operating income
compound annual growth rate between 5 and 15 percent (2011-2014), and cash
conversion at or above 70 percent annually (2012, 2013 and 2014).
· A directed issue of 31.7 million C shares to AB
Investor AB or subsidiaries of these companies, at a subscription price
corresponding to the ratio value of the share, i.e. SEK 5.
· Authorization for the Board of Directors to, prior to the
resolve on an acquisition offer of the 31.7 million C shares at a price per
share of no less than SEK 5 and no more than SEK 5.10. Following the
acquisition, the C shares will, in accordance with the articles of
be converted to B shares, which thereafter can be transferred to employees
on an exchange.
· Transfer of 26.2 million B shares during the period November
to and including November 2016, free of consideration, to employees covered
the terms of the LTV 2012.
· Transfer, prior to the AGM 2013, of 5.5 million B shares on
Stockholm at a price within the, at each time, prevailing price interval
share, to cover certain expenses, mainly social security charges.
The Company has approximately 3.3 billion shares in issue. As per today,
Company holds approximately 60 million shares in treasury. The 31.7 million
shares allocated for LTV 2012 now correspond to approximately 0.99 percent
the total number of outstanding shares.
Transfer of treasury stock for previously resolved LTV programs
· Transfer of approximately 15.5 million B shares on NASDAQ
Stockholm prior to the AGM 2013 to cover certain expenses, mainly social
security charges, which may occur in relation to the Long-Term Variable
Remuneration Programs 2008, 2009, 2010 and 2011.
Proposal on voting rights
The AGM resolved not to approve Einar Hellbom's proposal to delegate to the
Board of Directors to review and present to the next AGM how the shares are
be given equal voting rights.
NOTES TO EDITORS
Our multimedia content is available at the broadcast room:
Ericsson is the world's leading provider of communications technology and
services. We are enabling the Networked Society with efficient real-time
solutions that allow us all to study, work and live our lives more freely,
sustainable societies around the world.
Our offering comprises services, software and infrastructure within
and Communications Technology for telecom operators and other industries.
more than 40 percent of the world's mobile traffic goes through Ericsson
networks and we support customers' networks servicing more than 2 billion
We operate in 180 countries and employ more than 100,000 people. Founded in
1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company
revenues of SEK 226,9 billion (USD 35.0 billion). Ericsson is listed on
OMX, Stockholm and NASDAQ, New York stock exchanges.
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Source: Ericsson via Thomson Reuters ONE