Ericsson Expands Treasury Stock through C Share Acquisition for Long-Term Compensation Programs

Ericsson Expands Treasury Stock through C Share Acquisition

In a recent move aimed at bolstering its treasury stock, Ericsson (NASDAQ: ERIC) announced an acquisition offer for holdings of C shares, set to support its Long-Term Variable Compensation Programs (LTV) for the years 2024 and 2025. This decision aligns with resolutions made during its Annual General Meeting held in March 2025, indicating a strategic approach to enhance its compensation framework for its executives.

From May 5 to May 19, 2025, Ericsson plans to acquire all available C shares at an approximate cash payment of SEK 5 per share. This price corresponds to the quota value of the share, marking a significant financial maneuver for the company as it seeks to issue around 23.1 million C shares, designated for its compensation plans.

The move is particularly noteworthy as it is part of ensuring competitive compensation for Ericsson's leadership team and other executives. The company's Board of Directors has initiated this offer in accordance with prior authorizations, showcasing a commitment to aligning shareholder interests with executive remuneration.

Skandinaviska Enskilda Banken AB (SEB) has already subscribed to the entire offering of 23.1 million C shares and has indicated its intention to accept the acquisition proposal. Upon successful completion of the acquisition, Ericsson intends to convert these shares into B shares. This conversion is expected to enhance the liquidity and distribution of shares within the company’s stock structure.

Currently, Ericsson holds a total of 3,371,351,735 shares post-conversion, comprising 261,755,983 A shares and a substantial 3,109,595,752 B shares. Additionally, the company keeps around 15,579,561 B shares as part of its treasury stock.

This move is indicative of Ericsson's proactive stance in managing its equity and ensuring that its compensation programs not only attract but also retain top talent within the organization. By effectively managing its share capital, Ericsson is looking to maintain a competitive edge in the fast-evolving telecommunications landscape.

The Long-Term Variable Compensation Programs are designed to motivate Ericsson's executive team, linking their performance to the long-term success of the company while fostering an environment of accountability and performance-driven culture. In this regard, the acquisition of C shares signifies more than just a financial transaction; it highlights Ericsson's ongoing commitment to enhancing its management strategy and aligning it with broader business objectives.

In a world where technology and telecommunications are constantly evolving, Ericsson's initiatives for enhancing treasury stock through share acquisitions underline the importance of strategic financial management within corporations. The outcomes of these decisions will be closely monitored by shareholders and industry analysts, as Ericsson continues to navigate the challenges and opportunities presented by the global market.

For further details, Ericsson maintains a presence across various media channels, allowing stakeholders to stay informed about its future developments and initiatives. With such significant steps being taken, the telecommunications giant is positioning itself robustly for the coming fiscal periods, reinforcing both its market presence and its dedication to long-term success.

For more information, visit Ericsson's official site or follow their latest updates on their social media platforms.