Hans Vestberg, former president and CEO of Ericsson. Photo: Ericsson.

[Via Satellite 07-25-2016] Hans Vestberg, president, CEO and member of the board of directors of Ericsson, has stepped down with immediate effect, the company announced July 25. Executive Vice President (EVP) and CFO Jan Frykhammar will temporarily assume the CEO position until a new CEO is in office.

“I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters a next phase, driven by 5G, IoT and cloud, it is time for a new CEO to step in and continue the work to ensure Ericsson’s industry leadership,” said Vestberg.

Frykhammar will be president and CEO of Ericsson until the now initiated recruitment search has been concluded. The search process will comprise both internal and external candidates. Frykhammar joined Ericsson 1991, and has held various positions in finance and business control. In 2009, he became EVP, CFO and head of group function finance, and before that he was head of the company’s business unit global services.

“Hans has been instrumental in building strong relationships with key customers around the world and his leadership and energy have been an inspiration to employees and leaders across Ericsson. However, in the current environment and as the company accelerates its strategy execution, the board of directors has decided that the time is right for a new leader to drive the next phase in Ericsson’s development,” said Leif Johansson, chairman of the board at Ericsson.

Carl Mellander, currently VP and group treasurer, is acting CFO with immediate effect. Vestberg will be available to support the board and management during his term of notice of six months.