Ericsson Faces Questions for Flouting Executive Pay Guidelines

Shareholders of Ericsson AB are questioning the telecom-equipment giant’s decision to deviate from its own remuneration guidelines to pay massive bonuses to Rory Read, the chief executive of Vonage Holdings Corp.it acquired last year.

Read’s compensation came to more than $36 million in 2022, according to Ericsson’s annual report, published Wednesday. This compares to total remuneration of CEO Borje Ekholm of about $5 million for the same year.

“Sounds like Read had a very good bargaining situation and that Ericsson really thinks he has a unique competence and experience,” Joacim Olsson, CEO of the Swedish Shareholders’ association, ...