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G3 Share-based compensation (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of terms and conditions of share-based payment arrangement [line items]

Summary of Performance Criteria

LTV and EPP performance criteria

Program Year

Target

Criteria

Weight

Performance Period

Vesting Opportunity (linear pro-rata)

Achievement

Achieved Vesting Level

2023

2023 Group operating income (EBITA)

Range (SEK billion): 26.4 - 40.4

45%

Jan 1, 2023–Dec 31, 2023

0%–200%

SEK 21.4 billion

2)

0%

2023

Absolute TSR

Range: 6%-14%

25%

Jan 1, 2023–Dec 31, 2025

0%–200%

2023

Relative TSR

Ranking of Ericsson: 6–2

20%

Jan 1, 2023–Dec 31, 2025

0%–200%

1)

2023

Group Environmental, Social and Governance (“ESG”)

CO2e emissions (ktonnes): 142–121

1.66%

Jan 1, 2023–Dec 31, 2023

0%–200%

121.9 ktonne CO2

193.72%

CO2e emissions (ktonnes): 132–113

1.66%

Jan 1, 2024–Dec 31, 2024

0%–200%

CO2e emissions (ktonnes): 122–104

1.68%

Jan 1, 2025–Dec 31, 2025

0%–200%

Increasing the representation of women leaders in the Ericsson Group: Range 23%–25%

5%

Jan 1, 2023–Dec 31, 2025

0%–200%

2023 Total

100%

0%–200%

2022

2022 Group operating income (EBIT)

Range (SEK billion): 24.1–34.1

45%

Jan 1, 2022–Dec 31, 2022

0%–200%

SEK 32.2 billion

2)

162.76%

2022

Absolute TSR

Range: 6%-14%

25%

Jan 1, 2022–Dec 31, 2024

0%–200%

2022

Relative TSR

Ranking of Ericsson: 6–2

20%

Jan 1, 2022–Dec 31, 2024

0%–200%

1)

2022

Group Environmental, Social and Governance (“ESG”)

CO2e emissions (ktonnes): 265–200

5%

Jan 1, 2022–Dec 31, 2024

0%–200%

Increasing the representation of women leaders in the Ericsson Group: Range 22%–24%

5%

Jan 1, 2022–Dec 31, 2024

0%–200%

2022 Total

100%

0%–200%

2021

2021 Group operating income (EBIT)

Range (SEK billion): 15.0–24.0

50%

Jan 1, 2021–Dec 31, 2021

0%–200%

SEK 27.4 billion

2)

200%

2021

Absolute TSR

Range: 6%–14%

30%

Jan 1, 2021–Dec 31, 2023

0%–200%

-16.17%

0.00%

2021

Relative TSR

Ranking of Ericsson: 6–2

20%

Jan 1, 2021–Dec 31, 2023

0%–200%

1)

12 out of 11

0.00%

2021 Total

100%

0%–200%

100.00%

2020

2020 Group operating income (EBIT)

Range (SEK billion): 19.1–27.9

50%

Jan 1, 2020–Dec 31, 2020

0%–200%

SEK 29.1 billion

3)

200%

2020

Absolute TSR

Range: 6%–14%

30%

Jan 1, 2020–Dec 31, 2022

0%–200%

–6.65%

0.00%

2020

Relative TSR

Ranking of Ericsson: 6–2

20%

Jan 1, 2020–Dec 31, 2022

0%–200%

1)

12 out of 11

0.00%

2020 Total

100%

0%–200%

100.00%

1)  The portion of the Performance Share Awards granted to a participant based on the relative TSR performance condition is subject to fulfilment of the related performance criteria over the performance period compared to Peer Groups consisting of 11 companies for the program year 2023, 2022, 2021 and 2020. The vesting of the Performance Share Awards under this performance condition will vary depending on the Company’s TSR performance ranking versus the other companies in the peer group at the end of the performance period.

2)  Excludes restructuring charges and items not included in target performance criterion.

3)  Excludes restructuring charges.

4)  Excludes fines and similar related to the United States Department of Justice (DOJ) / U.S. Securities and Exchange Commission (SEC) resolution, including payments required pursuant to the DOJ Plea Agreement announced by the Company on March 2, 2023.

Summary of Number of Shares and Synthetic Shares

Number of shares and synthetic shares

(million)

Executive programs1) 2)

Of which the President and CEO

Share-settled programs

LTV 2023

LTV 2022

LTV 2021

LTV 2020

LTV 2019

Total

LTV 2023

LTV 2022

LTV 2021

LTV 2020

LTV 2019

Total

Maximum shares required

4.1

2.0

2.1

2.5

3.0

13.7

–

–

–

–

–

–

Granted shares

3.7

0.7

0.6

0.9

0.6

6.5

0.6

0.3

0.3

0.4

0.3

1.9

Outstanding number of shares beginning of 2023

–

0.9

0.9

0.9

0.8

3.5

–

0.4

0.5

0.4

0.3

1.6

Exercised during 2023

–

–

–

–

–

–

–

–

–

–

–

—

Forfeited during 2023

–

–

–0.1

–

–

–0.1

–

–

–

–

–

—

Increase/decrease due to performance condition 2023

–1.7

–

–0.3

–

–

–2.0

–0.3

–

–0.2

–

–

–0.5

Outstanding number of shares end of 2023

2.0

0.9

0.5

0.9

0.8

5.1

0.3

0.4

0.3

0.4

0.3

1.7

1) LTV 2023 includes Executive Team and Executives

2) LTV 2019 and 2020 actual share delivery in 2024 can deviate due to reduced or cancelled vesting and withholding of shares.

Executive performance program

Key contributors plans

Cash-settled plan

EPP 2022

EPP 2021

EPP 2020

Total

KC 2023

KC 2022

KC 2021

KC 2020

Total

Synthetic shares

1.1

0.7

–

1.8

30.2

7.5

3.4

–

41.1

Summary of Compensation Expense

Compensation expense for LTV 2020–2023
Share-settled programs			2023				2022				2021				2020				Total
LTV 2023 1)			25				–				–				–				25
LTV 2022			20				12				–				–				32
LTV 2021			31				36				24				–				91
LTV 2020			6				31				31				23				91
LTV 2019			–				10				28				28				66
Total share-settled programs			82				89				83				51				305
Of which the President and CEO			32				41				38				24				135
Cash-settled plans
EPP 2022			20				12				–				–				32
EPP 2021			16				15				17				–				48
EPP 2020			3				–19				56				34				74
Total executive performance plans			39				8				73				34				154
KC 2023			811				–				–				–				811
KC 2022			330				280				–				–				610
KC 2021			91				89				355				–				535
KC 2020			18				5				376				523				922
Total key contributor plans			1,250				374				731				523				2,878
Total cash-settled plans			1,289				382				804				557				3,032
Total compensation expense			1,371				471				887				608				3,337

1) LTV 2023 includes Executive Team and Executives.

Summary of FV Per Performance Criteria and Program

Fair values (SEK)
Executive team/ Executives programs			LTV 2023				LTV 2022				LTV 2021				LTV 2020				LTV 2019
Share price at grant			55.59				78.88				116.66				78.88				90.70
Fair value Absolute TSR			32.75				41.18				113.47				54.69				87.92
Fair value ESG – Environmental (1,2,3)			47.80				71.45				–				–				–
Fair value ESG – Social			47.80				71.45				–				–				–
Fair value Relative TSR			39.40				54.48				108.61				98.06				94.63
Fair value Group operating income (EBITA and EBIT)			47.80				71.45				110.70				74.22				86.94
Executive performance plans			EPP 2023				EPP 2022				EPP 2021				EPP 2020
Fair value Absolute TSR			–				2.30				–				–
Fair value ESG – Environmental			–				58.42				–				–
Fair value ESG – Social			–				58.42				–				–
Fair value Relative TSR			–				2.40				–				–
Fair value Group operating income (EBIT)			–				58.42				61.13				60.31
Key contributor plans			KC 2023				KC 2022				KC 2021				KC 2020
Fair value – Tranche 1			61.12				60.31				94.13				109.80
Fair value – Tranche 2			58.40				61.13				60.31				94.13
Fair value – Tranche 3			55.81				58.42				61.13				60.31

Ericsson Share Purchase Plan [Member]

Disclosure of terms and conditions of share-based payment arrangement [line items]

Summary of Stock Purchase Plans

Ericsson share purchase plan
Eligible employees		Number of countries with ESPP		Number of participants				Take-up rate – percent of eligible employees
77,748		77			14,030				18.0%

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The disclosure of the number and weighted average exercise prices of share options. [Refer: Weighted average [member]]

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