Board of Directors’ remuneration

Remuneration to Board members not employed by the Company is proposed by the Nomination Committee for resolution by the Annual General Meeting. Board members who are not employed by Ericsson are not invited to participate in the Group’s share based long-term variable remuneration plans.

The Annual General Meeting 2008 approved the proposal by the Nomination Committee for yearly fees to the non-employed Board members for Board and Committee work. For information on Board of Directors’ fees 2008, please refer to the table in Notes to the Consolidated Financial Statements – Note C29 “Remuneration to the Board of Directors” in the Annual Report. The Annual General Meeting 2008 also approved the Nomination Committee’s proposal that it will be possible for non-employed Board members to be paid part of the fee, in respect of the Board assignment, in the form of so-called synthetic shares. A synthetic share gives the right to receive a future payment of an amount which corresponds to the market value of a Class B share in the Company at the time of payment. The purpose of paying part of the Board of Director’s fee in the form of synthetic shares is to further enhance the Directors’ interest in Ericsson and its financial development and also provides an opportunity for the Directors to have a financial interest in the Company comparable with that of a shareholder. For more information on the terms and conditions of the synthetic shares, please refer to the notice convening the Annual General Meeting 2008 (www.ericsson.com/ericsson/investors/shareholders/agm). Information on our website does not form part of this document.