Svanberg claims millions in holiday pay out

Carl-Henric Svanberg, the former CEO of Swedish telecom firm Ericsson, has been paid 6.8 million kronor ($960,000) for accrued holiday that he was unable to take.

Svanberg claims millions in holiday pay out

Svanberg has already received a bonus of 6.2 million kronor for 2009 from the Swedish firm, added to his fixed salary of 16 million kronor, and long-term flexible remuneration of 1.3 million kronor, bringing his total pay out for 2009 to 41.9 million kronor.

Svanberg was not alone in gaining an income boost in 2009, with chairperson Michael Treschow also upping his pay from 3.4 million in 2008 to 4.2 million in 2009.

Mike Volpi has been proposed to the board of the telecom giant. Volpi is currently a partner in Index Ventures Рa venture capitalist firm, and has in recent years been CEO for internet video firm Joost, founded by Niklas Zennstr̦m.

Svanberg’s successor as Ericsson CEO, Hans Vestberg, is also set to join the board, with Treschow and the other current members proposed for re-election, according to a company statement.

Carl-Henric Svanberg was CEO of Ericsson from 2003-2009 and is credited with turning the firm’s financial fortunes around. He earned in excess of 300 million kronor from the firm during his tenure, including 120 million earned trading in the firm’s stock.

Since January 1st 2010 Svanberg has been CEO of British Petroleum.

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Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.