After more than nine years as president and CEO and 20 years as a board member, the company announces that Börje Ekholm will step down on September 30 this year.
In the fall of 2016, Börje Ekholm took over a company that had been in the ditch with multibillion-dollar losses following former CEO Hans Westberg.
First celebrated
A new strategy was outlined, huge savings packages were presented and substantial profit increases were promised. Eventually it had an effect and Ericsson, as the global player in the telecom market that it is, began to recover. Ekholm was praised for finally getting the Swedish telecom jewel in order.
But then new scandals began. Corruption and bribery allegations had been bubbling up in the group for some time, but when suspicions arose that Ericsson had bribed the terrorist organization IS in Iraq, the situation escalated, which later resulted in multibillion-dollar fines.
Discharge from liability denied
Börje Ekholm, along with the board, was heavily questioned, including over attempts to cover up what had actually happened. At a stormy meeting in 2022, Ekholm and several members of the board were denied discharge from liability, but were still allowed to continue in their positions.
Ekholm will not step down immediately. He will become a senior advisor to the new CEO until June 15, 2027, the company writes.
"Börje's tenure as CEO of Ericsson is defined by extraordinary leadership and strategic progress. During his nearly ten years as CEO, we have seen Ericsson strengthen its position as the leading provider of secure communications networks," says the company's chairman, Jan Carlson, in the press release.
“Great honor”
Ekholm's replacement, Per Narvinger, has had a long career at the company. Since joining in 1997, he has led Ericsson's Networks business area, among other roles.
"It is a great honor to take on this assignment at a company where I have spent my entire career. It has been a pleasure to work with Börje and our shared goal of creating a stronger Ericsson," says Per Narvinger in a comment.
The announcement of the CEO change was met poorly on the Stockholm Stock Exchange, with Ericsson's shares falling 4.2 percent on Tuesday.
