Remuneration overview

Remuneration at Ericsson is based on the principles of

• performance,
• competitiveness and
• fairness

Our remuneration policy, together with the mix of several remuneration elements, is designed to reflect these remuneration principles in a balanced way by creating an integral remuneration package.

For our senior management, total remuneration consists of

• fixed salary,
• short-term variable remuneration,
• long-term variable remuneration,
• pension and
• other benefits

If the size of any of these elements should be increased or decreased, at least one other element has to change where the competitive position should remain unchanged.

Details of how we deliver on our principles and policy, including information on previously decided long term variable remuneration that has not yet become due for payment, can be found in the Remuneration Report and in Note C28, "Information regarding members of the Board of Directors, management and employees" in the annual report 2012.

The Annual General Meeting of shareholders held on April 9, 2013, approved the Board of Directors' proposal for Guidelines for remuneration to Group Management.

The results of the Board of Directors’ evaluation of remuneration of senior management are included in the Remuneration Report.

Share based incentive programs

Share-based long-term variable remuneration plans are submitted each year for approval by shareholders at the Annual General Meeting. Details of currently outstanding share based incentive programs can be found in Note C28 and in the Remuneration Report.