Friday, June 3, 2016

Ericsson Chief Flight note: 300 million SEK – Swedish Dagbladet

an aircraft of type Falcon 7x that should belong to Blue Chip Jet. It’s CEO Hans Vestberg who decides when he will fly private jets. Photo: Roger Schederin / TT and Magnus Hjalmarsson Neideman

SvD Business has previously reported that payments to telecom giant Ericsson’s management is clearly higher than for several other major companies on the Stockholm Stock Exchange. The management team has cost shareholders 1.3 billion since 2010 when Hans Vestberg was appointed CEO. But it’s not just wages that cost. When Hans Vestberg traveling is often done by private jet via the company Blue Chip Jet Ericsson owns together with Volvo.

The company owns two aircraft of the brand Falcon 7X, which can take up to 16 passengers and has a range of 11,000 kilometers. The purchase cost was about 850 million.

– by Ericsson used Blue Chip Jet when the president is having. During the trips he makes flying though obviously other group management members and key people on the planet still possible, says Karin Hall Town on Ericsson’s press department.

According to Ericsson’s Hans Vestberg to decide whether he should fly private jets.

cost per flight hour for a Falcon 7X is on the order of 250 000. This means that the cost of flying Hans Vestberg, for example, China’s capital Beijing landing at around 4.5 million return.

As Blue Chip Jet is based in Gothenburg will travel to pick up and leave in Stockholm.

Hans Vestberg has in an interview said that he is on the move most of the time and just spend five days a month in Sweden.

According to Ericsson uses the board also plan to once per year visit activities abroad.

Even Chairman Leif Johansson uses occasional Blue Chip Jet. In 2015 made such a trip.

Ericsson reports not cost of Blue Chip Jet but Dagens Industri has previously written that the losses of the company, in which Ericsson holds 50 percent, summed up to 665 million crowns between 2009 and in 2013.

Ericsson confirms now for SvD Business telecom giant’s cost to Blue Chip Jet was on average 50 million per year between 2010 and 2015 for a total of 300 million during his Vestberg CEO-time.

When hygiene giant SCA’s air travel by private jet was revealed showed that the company’s costs amounted to SEK 325 million over five years, or 65 million per year.

investigators Svante Forsberg and Johan Munck criticized SCA that this was far too expensive, including for aircraft used inefficiently. They concluded that it should be possible to save 25 to 35 million a year. SCA has now terminated its business flights.

There are several common denominators between SCA and Ericsson. Power company Industrivärden is a major owner of Ericsson alongside Wallenberg, Investor and also controls the SCA.

Commercial Banking Sphere earlier toppduo Sverker Martin-Löf, Anders Nyrén was sitting on the Ericsson board for many years and Ericsson’s chairman Leif Johansson was the SCA board up until the Annual Shareholders’ Meeting.

Hans Vestberg expensive flight behavior stands in stark contrast to those of regular employees in Ericsson.

on shorter trips but also travel between different parts of the world, it’s economy in force since a few years back. Even for those who start working immediately after landing in a new time zone.

– It is clear that there can be a bit hard at times to fly long distances in economy class. It is both easier to prepare for upcoming meetings and work away things if you are sitting a little more comfortable and maybe not as close to their fellow passengers, testifies an employee at Ericsson, which wishes to remain anonymous.

Although Ericsson employees are sometimes offered by their travel coordinator to a couple of thousand, if an airline, for example, has a favorable campaign to upgrade their ticket is no, according to company policy. It is too expensive.

– The worst is actually not our situation and the policies we have. It’s really quite healthy. But I’m extremely disappointed when we know that management and senior managers have completely different conditions. There seems to be no restrictions at all, says the same person.

Around 50 senior managers, plus senior management have a completely different policy than the rest of the company. Although there are so many airlines that have retained an exclusive first class chooses high Ericsson Managers are often first class when possible, according to SvD’s sources. Otherwise, always in business class, even on short distances between such cities in Europe.

– In general, the group management the opportunity to travel in Business Class. Regional managers and direct reports to senior management and regional managers are also able to travel business class with manager approval, on intercontinental journeys lasting over six hours, says Karin Hall Town on Ericsson’s press department.

When the hotel so it is four- or five-star that apply when high Ericsson Managers should stay over.

– it’s not just the price point we are referring to when it comes to hotels. I do not do it so much but it feels like how much we gnetar so management can not help but spend unnecessarily on themselves, said an employee at Ericsson.

Read SvD’s award-winning examination of SCA’s private aviation


No comments:

Post a Comment