Ericsson's Vestberg steps down - search for new CEO initiated

• Hans Vestberg leaves all assignments, effective immediately but remains at the company's disposal
• Jan Frykhammar takes on the role as CEO until search is successfully completed
• Carl Mellander is appointed acting CFO

Ericsson's (NASDAQ:ERIC) Board of Directors today announced that Hans Vestberg steps 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 says: "Hans Vestberg has led the company for seven years through significant industry and company transformation. Hans has been instrumental in building strong relationships with key customers around the world and his leadership and energy have been an inspiration to employees and leaders across Ericsson. 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 says: "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.

"As stated in the report the Board fully supports the cost reduction plans. In addition, the Board supports the company business strategy and new company structure," Johansson continued.

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. As customary, the search process will comprise both internal and external candidates.

Jan Frykhammar joined Ericsson 1991, and has held various positions in finance and business control. In 2009, Frykhammar became Executive Vice President, CFO and Head of Group Function Finance, and before that he was Head of Business Unit Global Services. He holds a Bachelor of Business Administration and Economics from the University of Uppsala, Sweden.

Johansson says: "Jan has made it clear that he is not aspiring to permanently take on the CEO role. However, I am very pleased that he has accepted this assignment. Jan will secure continued strong execution and leadership in the current situation."

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

Hans Vestberg will be available to support the Board and management during his term of notice of six months.

Souirce: Ericsson release