Ericsson’s Hans Vestberg earns $2.34 mn as severance pay

Ericsson CEO Hans VestbergEricsson has paid SEK 21,206,863 or $2.34 million to Hans Vestberg, the former president and CEO, as the contractual severance pay package.

The termination package to Hans Vestberg was equivalent to his 18 months’ salary excluding social charges and taxes, said Ericsson in its annual report.

Hans Vestberg left his position as president and CEO of Ericsson effective July 25, 2016 and was replaced by the executive vice president Jan Frykhammar.

Borje Ekholm was appointed new president and CEO of Ericsson effective January 16, 2017.

Ericsson said the number of employees decreased by almost 5,000 driven by the ongoing cost and efficiency program in 2016. Ericsson has 111,464 employees in 2016.

Ericsson sales in 2016 fell 10 percent due to lower demand for mobile broadband.