EUR 1000.00 For Business Accounts Only

Ericsson - AGM 30 March 2021

We note that as a result of the Covid-19 pandemic the AGM will be held as an electronic meeting only. Consequently, it will not be possible to attend the AGM in person.

Under ITEM 7.2 approval of the Company's first remuneration report is sought. Although we welcome the overall level of transparency of Ericsson’s remuneration report, we note that half of the LTI has a performance period of 1 year (i.e. the part related to the group operating income measure with a weighting of 50%). For the company CEO this is not really a concern to us since he is not entitled to any ST variable salary. Here the LTI as a standalone would work perfectly fine with a performance period varying between 1 - and 3 year(s) with a ST part based on group operating income and a LT part based on absolute and relative TSR. But his argument is not valid for the other members of Ericsson’s executive management who also receive ST variable salary in addition to the LTI. In this case, we do NOT consider a performance period of only 1 year to be sufficiently long enough. Finally, we deem the company CEO’s annual base salary at the upper level of Swedish market practice and we furthermore consider his pension benefits to be excessive. In view of the above concerns, we recommend to vote OPPOSE.

Under ITEMS 10.1-10.10, the nomination committee proposes the (re-)election of the board of directors.

In view of concerns over aggregate time commitments we recommend to vote OPPOSE to the (re-)election of: Messrs. Jan Carlson (ITEM 10.2) and Mr. Ronnie Leten (ITEM 10.7).

Under ITEM 11 the nomination committee proposes to re-appoint Mr. Ronnie Leten as Chairman of the board of directors. In view of concerns over his aggregate time commitments, we recommend to vote OPPOSE.

Under ITEM 16.1 approval of a share-related incentive plan is sought. We note that the maximum LTI, corresponding to 380% of annual base salary (for the CEO), exceeds the maximum threshold of 300% of annual base salary under our guidelines. Accordingly, we recommend to vote OPPOSE.

ITEMS 16.2 and 16.3 are considered to be enabling resolutions of the share-related incentive plan under ITEM 16.1 above. Accordingly, we recommend to vote OPPOSE.

Finally, we note that, unlike best practice, the voting results of the AGM 2020 are not disclosed. We urge the Company to do so next year.