- Push-out Score suggests push-out forces
- After around six years on the job
- Search for a successor
- Johansson spoke at length and said 120 words
(exechange) — Stockholm, Sweden, July 05, 2017 — Leif Johansson, Chairman of Ericsson, leaves. As announced by Telefonaktiebolaget LM Ericsson in a news release and in a regulatory filing published on Wednesday, July 05, 2017, Leif Johansson leaves the post as Chairman at the telecommunications equipment company after around six years on the job.
Johansson’s move comes six months after Börje Ekholm took over as CEO of Telefonaktiebolaget LM Ericsson.
Leif Johansson has informed that he will not make himself available for reelection at the Annual General Meeting of shareholders 2018.
Ericsson will undertake a search for a successor.
“New ownership constellation”
A reason for the change was not explicitly given. Leif Johansson said: “The company now enters a new phase, with focus on execution, and we also have a new ownership constellation. It is natural to let the owners jointly propose a chairman and well ahead of this I want to announce that I will not be available for a next term.”
Precise information about the future plans of Johansson was not immediately available.
“Will not make himself available for reelection”
Ericsson said: “Chairman of the Board of Directors Leif Johansson has informed that he will not make himself available for reelection at the Annual General Meeting of shareholders 2018.”
Share price decline
The change follows a decline in the share price of Telefonaktiebolaget LM Ericsson since April 2015.
Cevian holds 5.6 percent stake
Cevian Capital reported a 5.6 percent stake in Telefonaktiebolaget LM Ericsson. Cevian Capital is an activist investor.
CEO: Börje Ekholm
Börje Ekholm serves as CEO of Telefonaktiebolaget LM Ericsson. Ekholm has been the Chief Executive Officer and President of Ericsson since January 16, 2017.
On the job as Chairman since 2011
Leif Johansson serves as Chairman of the Board of Directors, Chairman of the Remuneration Committee and of the Finance Committee.
Johansson’s bio reads as follows:
- Born 1951.
- Master of Science in Engineering, Chalmers University of Technology, Gothenburg, Sweden.
- Board Chairman: Astra Zeneca PLC.
- Board Member: Autoliv, Inc., Ecolean AB and The Confederation of Swedish Enterprise.
- Holdings in Ericsson: 103,933 Class B shares.
- Principal work experience and other information: Member of the European Round Table of Industrialists since 2002, and served as its Chairman 2009-2014. President of the Royal Swedish Academy of Engineering Sciences since 2012. Chairman of the International Advisory Board of the Nobel Foundation. President and CEO of AB Volvo 1997–2011. Executive Vice President of AB Electrolux 1988-1991, President 1991–1994 and President and CEO of AB Electrolux 1994–1997. Holds honorary Doctorates at Blekinge Institute of Technology, the University of Gothenburg and Chalmers University of Technology. Awarded the Large Gold Medal of the Royal Swedish Academy of Engineering Sciences in 2011.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Leif Johansson’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 28.2017 ($).