Ericsson Intros Incentive Plan

A stock option plan and a stock purchase plan for its employees

November 20, 2000

1 Min Read

STOCKHOLM -- The program is intended to comprise two parts, one Stock Option Plan and one Stock Purchase Plan and is expected to run for a period of two years, starting 2001. The Ericsson (NASDAQ:ERICY - news) Board has found it important to investigate the possibilities to introduce a broad incentive program for the employees, aiming at increasing the employees' shareholding in Ericsson. The Board believes that it is necessary to attract employees by offering such kinds of remuneration packages, which are common within the industry that Ericsson is operating in. The Global Stock Incentive Program is expected to attract and retain employees. Further, it is important to support the employees' loyalty to the company, which will increase shareholders value. This is to the benefit of both shareholders and employees.

The Stock Purchase Plan is intended to be offered to all employees who will be invited to make limited contributions from salary to purchase shares. For each B-share in Ericsson purchased by the employee and kept for a certain period of time, he or she will receive free of charge one B-share. The Stock Option Program is intended to be offered to employees identified as critical to the future development of the Ericsson Group. The Plan will be based on employee stock options, giving the right to acquire B-shares in Ericsson at a fixed price. The options will be free of charge, and the strike price for the shares will equal the market value of the share at grant.

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