Plans by the board of Swedish telecommunications equipment maker Ericsson to introduce a bonus program for all Ericsson employees were stopped Wednesday at the company's annual general meeting, reports said Thursday.
US-based equity funds that own just over 10% of Ericsson blocked the proposal that would have needed approval by 90% of the shareholders. Representatives for the equity funds did not detail why they opposed the incentive program. Both Ericsson chairman Michael Treschow and CEO Carl-Henric Svanberg expressed regret over the decision. The bonus program would have included some 65,000 employees and allowed them to save a portion of their salary in Ericsson. The board was likely to present a revised proposal this autumn, Treschow said. (news.monstersandcritics.com)