Cevian Capital, one of Ericsson’s ERICb.ST largest investors, announced on Monday that it would vote against a motion this week that would absolve some board members of responsibility for the possible payment of bribes to militant groups in Iraq.
Another major shareholder, Norway’s sovereign wealth fund, has said it will vote against the motion at the annual shareholders’ meeting on Tuesday.
The US Justice Department and its shareholders have chastised Ericsson for failing to properly disclose that its investigation in 2019 revealed that the company may have paid militant organisations in Iraq.
“We still lack the information necessary to make an informed judgment of what went wrong, why, and who should be held responsible,” Cevian said in a statement. “Given the lack of information and the magnitude of the damage, we have no choice but to hold the entire board accountable.”
Cevian owns slightly less than 5% of Ericsson. The company’s largest shareholder is AB INVEb.ST, followed by Primecap Management, BlackRock, Swedbank Robur Fonder, and AB Industrivärden INDUa.ST. Other major investors include Primecap Management, BlackRock, Swedbank Robur Fonder, and AB Industrivärden INDUa.ST.
The $1.3 trillion sovereign wealth fund of Norway will vote against granting discharge to five members of the company’s board of directors, including its president.
It is rare for shareholders of a top Swedish company to not grant discharge of liability, and any such move would likely raise pressure on the company’s board to overhaul its management. The fund has a 1.45% stake in Ericsson worth $532 million at the end of 2021.
