Ericsson will sell a portion of company shares that were set aside as bonuses for employees in a long-term reward scheme.
The move is aimed at covering taxes and social security costs linked to those bonuses.
Ericsson’s shareholders gave the green light for the company to sell up to 60 per cent of the shares earned by staff under a 2022 performance program. The sales can happen between now and the next annual meeting in 2026.
The shares will be sold on the Nasdaq Stockholm stock exchange at normal market prices. Ericsson says this is a routine step to make sure it can handle tax obligations tied to employee rewards.
Out of nearly 38.4 million bonus shares the company currently holds, a maximum of around 369,000 may be sold for this purpose.\
Employees will still receive their earned bonuses as he company is not reducing the bonus pool, just using a small part of it to fulfil tax obligations.
This is standard practice in many companies to avoid putting the tax burden directly on employees. The move is more about administrative and financial housekeeping than any reduction in employee reward
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