Ericsson’s Board of Directors will propose a new Long-Term Variable Remuneration Program for consideration at the company’s annual general meeting on April 22, 2009. The program comprises in total 27 million B-shares and is divided into three plans: (1) a Stock Purchase Plan embracing all employees, designed to award employees one Ericsson share for each share invested in under the plan, (2) a plan for up to ten percent of the employees selected as key contributors to receive a second matching share, and (3) a plan embracing the CEO and other senior managers, up to 0.5 percent of employees who at a maximum can earn a further four, six or eight matching shares in addition to the ordinary matching share under the Stock Purchase Plan, provided that certain financial goals are met.
Matching under the program presupposes that the employee invests part of the salary (up to 7.5 percent, the CEO: 9 percent, of the gross fixed salary) in Ericsson shares, retain the shares and remains in employment at the time of the matching, three years after the investment.
The proposal gives the shareholders the opportunity to vote for each of the respective plan, including its financing. Further details are posted on the company’s website.
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