The appointment of Börje Ekholm as CEO for Ericsson last Wednesday was one of the more sensational pieces of news on the Stockholm stock market for several years. An initial gain in share price was later cancelled out due to Börje Ekholm’s decision to remain in the USA and the fact that he did not distance himself from Ericsson’s recent strategy.
DI reports that not all board members realised Ekholm would not move to Sweden, which creates problems for the board that fired Bina Chauraisa, HR director in October, because she lived in the USA and Ericsson needed someone stationed in Stockholm. Furthermore shareholders have expressed their concern about how it will work and how much time will be wasted on travel.
Furthermore in an interview with SvD chair of Ericsson’s board Leif Johansson admits that he and the board ought to have noticed Ericsson’s decline earlier. “If we had foreseen the decline that came heavily at the start of 2016 then we would have acted differently,” he says.