Swedish network infrastructure vendor Ericsson is going through a period of transition. On July 25 last year then-CEO of seven years Hans Vestberg stepped down after telling investors that 2016 Q2 operating income fell 22% year-over-year to $326 million. Vestberg was ultimately replaced by current CEO Börje Ekholm an apparent divesture of business assets including the sale of its power modules unit to Flex, and reports that it’s selling its substantial media business as well.
On June 1 the company announced that Leif Johansson, chairman of the company’s board of directors since 2011, will not stand for re-election to the post for a term beginning in 2018.
Johansson said in a statement: “It has been an exciting but also challenging time. Börje Ekholm assumed the position as CEO in the beginning of the year and during the first quarter the company presented a new, more focused, business strategy. This strategy, which is supported by the board and the major owners, creates a solid foundation for realizing Ericsson’s full potential. 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”.
A nomination committee, comprising six members including Johansson, will come up with a potential chairman candidate and present that person to the board of directors. In addition to Johansson, the nomination committee includes reps from major shareholders including Investor AB, owned by the influential Wallenberger family, and activist hedge fund Cevian Funds.
