Ericsson Increases Its Share Count as Part of Employee Compensation Plans

Overview of Ericsson's Share Count Update

On May 30, 2025, Telefonaktiebolaget LM Ericsson announced an updated total of shares, reaching an impressive 3,371,351,735. This figure includes 261,755,983 A shares and a substantial 3,109,595,752 B shares. Notably, these shares result in a total voting count of 572,715,558.2, fragmenting into 261,755,983 votes attributed to A shares and 310,959,575.2 votes accounted to B shares.

Background of the Increase

The increase in share count stems from the company's issuance of 23.1 million C shares completed earlier in May 2025. Shortly after their issuance, these C shares were repurchased and converted into B shares, following a conversion mechanism detailed within the company’s articles of association.

This method aligns with Ericsson's regulatory compliance and serves to bolster its treasury stock in accordance with resolutions enacted during the Annual General Meeting (AGM) in 2025. Such a strategic move is instrumental in financing the Long-Term Variable Compensation Programs (LTV). These programs aim to reward the company’s executive team and other eligible executives, ensuring their contributions are compensated suitably.

Current Treasury Stock

At present, Ericsson holds 38,065,074 B shares as treasury stock, providing it with further flexibility and resources in its operational strategies moving forward. This adjustment signifies not just a shift in share distribution, but also a commitment from Ericsson to stand by its workforce through adequate compensation programs.

Importance of the Update

Ericsson's transparent disclosure of this information is in compliance with the Swedish Financial Instruments Trading Act. Such communication is crucial for maintaining investor trust and demonstrating the company's commitment to good governance and organizational integrity.

Offering more clarity regarding its shares and votes showcases vibrancy in stock management and corporate governance, allowing stakeholders—including investors and employees—to have a better understanding of the company's position.

According to the announcement, the information was made public at 08.00 CEST on the same day, aligning with corporate practices for timely updates regarding changes that could impact shareholder interests.

Conclusion

As a leading player in the telecommunications sector, Ericsson's increase in share count functionalities endeavors to strengthen its operational capabilities and reinforces the bond with its workforce through financially rewarding programs. The corporate strategy to adapt its share structures to support employee compensation showcases the company's proactive approach in a competitive market.

For ongoing updates and insights, stakeholders and interested parties are encouraged to engage with Ericsson’s press releases and corporate communications, ensuring they stay informed on the company's forward-moving strategic initiatives.

For more information, visit Ericsson’s official website.