Ericsson's Vestberg steps down from his post

Ericsson's Vestberg steps down from his post
On 1 January 2010, Vestberg became CEO for Ericsson, replacing Carl-Henric Svanberg.
Published: 25 July 2016 - 6:24 a.m.
By: CommsMEA staff writer

Hans Vestberg has stepped down as president and CEO and member of the Board of Directors of Ericsson with immediate effect. Jan Frykhammar, executive vice president and CFO, will assume the CEO position until a new CEO is in office.

Chairman of the Board Leif Johansson said:"Hans Vestberg has led the company for seven years through significant industry and company transformation. However, in the current environment and as the company accelerates its strategy execution, the Board of Directors has decided that the time is right for a new leader to drive the next phase in Ericsson's development."

Hans Vestberg said: "I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters a next phase, driven by 5G, IoT and Cloud, it is time for a new CEO to step in and continue the work to ensure Ericsson's industry leadership."

In conjunction to presenting its earnings report for the second quarter on July 19, the company presented a strong action plan to significantly reduce cost and adapt to the current market environment.

Effective immediately Jan Frykhammar, executive vice president and CFO, steps into the position as president and CEO until the now initiated recruitment search has been concluded. Johansson said: "Jan has made it clear that he is not aspiring to permanently take on the CEO role."

Carl Mellander, currently VP & Group Treasurer, has been appointed acting CFO with immediate effect.

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