Shareholders Association: Ericsson settlement of the airlines raises questions – Swedish Dagbladet

Albin Rännar, director of market intelligence at the Shareholders’ Association Photo: Marcus Ericsson / TT

Flight habits in Ericsson top layer , with CEO Hans Vestberg in the lead, has cost company SEK 300 million over five years. At the same time, employees have had to content themselves with flying economy class.

But now it is out of generosity. Just hours after SvD asked questions about the business, announced both Ericsson and Volvo that they are about to dismantle its common carriers, Blue Chip Jet.

Albin Rännar, director of market surveillance on Shareholders’ Association is not fundamentally opposed to business use air for purely commercial purposes. But when it comes to this sort of sums should a company prove and justify why it is important.

– This is about very large amounts, which is at odds with the spending cuts and austerity packages that have taken place in the Ericsson recently. Not least if you look at the poor progress that Ericsson had in the stock market recently. If you buy a flight duty, you have to actively decide whether to outsource, for example, 4.5 million to travel to Beijing, says Rännar.

He stands , but wonders why Ericsson decided to service all of a sudden no longer needed.

– it is strange that Ericsson was a very sudden decision to liquidate this. If it has been justified to add 300 million in the past six years, why is it suddenly not justified to do so? It would be good if the auditors could look over the rules are followed and if there are controls for the trips, said Rännar.

Ericsson cost airline Blue Chip Jet has averaged 50 million per year between 2010 and 2015 for a total of 300 million during his Vestberg CEO-time . Photo: Christine Olsson / TT

it is important to ensure that it is related to the service, so that we as shareholders can feel confident that it is not wasted money.

Large owner Folksam want does not decide whether a flight nota 50 million per year is a reasonable price Ericsson’s business travel, as long as it does not jeopardize the situation for shareholders.

– We do not question that CEOs of large companies that Eriksson traveling. It is up to the company to decide what they think is important to win in time. But on the other hand, it is important to ensure that it is related to the service, so that we as shareholders can feel confident that it is not wasted money, says Carina Lundberg Markow, head of responsible ownership at Folksam.

How are share savers’ confidence?

– It affected very negatively, previously at SCA tours. In the end it may be the cracking confidence. All business leaders will do well to develop a policy that everyone can understand, and be sure to keep it.

Both Folksam and SPP funds , which is one of the twenty largest shareholders Ericsson, think it is good that the airline now closed down.

– Ericsson has obviously come to the conclusion that aviation does not pay off, otherwise it would not close down. Then it is good to do something about it and that there is some kind of evaluation of this, says Carina Lundberg Markow, Folksam.

“We welcome that change their travel policy and looks at how the new technology can challenge an old behavior, “writes Liza Jonson, CEO of SPP funds in a statement.

Investor and Industrivärden , which both have large holdings and holds the role as active owners Ericsson, putting a lid on IT giant’s extravagant flight costs.

– we do not comment on media which thoughts and ideas we have, says Sverker Sivall, communications manager at Industrivärden.

“If we as owners have questions to our holdings related to the companies’ flight and shipments, as we prefer to take the dialogue through the boards and not via the media. So we always work, “writes Investor Communications Stefan Stern sms to SvD.