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Borje Ekholm

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Börje Ekholm (born 1963) is a Swedish-American business executive serving as President and Chief Executive Officer of Telefonaktiebolaget LM Ericsson, the Swedish multinational telecommunications company and 5G technology leader. He has led the company since January 2017, succeeding Hans Vestberg.

Under Ekholm's leadership, Ericsson has navigated a significant turnaround from losses to profitable growth while investing heavily in 5G technology. However, his tenure has also been marked by major corruption scandals, including revelations about payments to ISIS in Iraq and a $1 billion settlement with US authorities over bribery violations—controversies that led shareholders to twice refuse to discharge him from liability.

Early life and education

Börje Ekholm was born in 1963 in Borås, Sweden, a textile-manufacturing city west of Gothenburg. He was raised in Edsbruk, a small locality near Västervik in southeastern Sweden. His early education took place at Västerviks Gymnasium.

Ekholm pursued higher education at KTH Royal Institute of Technology in Stockholm, earning a Master of Science in Electrical Engineering between 1984 and 1988. He subsequently obtained a Master of Business Administration from INSEAD in France, completing the program between 1989 and 1990.

In recognition of his contributions to industry and his alma mater, he later received an honorary doctorate from KTH Royal Institute of Technology.

Career

Early career

Ekholm began his career at McKinsey & Company, where he held various consulting positions. This experience provided him with a foundation in strategic management and corporate restructuring.

Investor AB (1995–2017)

Ekholm's career became closely intertwined with Investor AB, the Wallenberg family's powerful investment company and one of Sweden's most influential corporate entities.

He served as President and CEO of Investor AB from 2005 to 2015, overseeing its portfolio of major Swedish companies. His other positions at Investor AB included Head of New Investments and President of Investor Growth Capital Inc.

From 2015 until early 2017, Ekholm served as CEO of Patricia Industries, a division within Investor AB focused on wholly-owned subsidiaries.

Ericsson CEO (2017–present)

In January 2017, Ekholm became President and CEO of Ericsson, succeeding Hans Vestberg. At the time of his appointment, Investor AB was Ericsson's largest shareholder, and Ekholm had served on Ericsson's board since 2006.

He inherited a company in crisis—Ericsson had reported significant losses and was struggling to compete in the telecommunications equipment market. Ekholm implemented an R&D-led business turnaround strategy, completed in 2020, that transitioned the company from losses to sustained profitable growth.

Under his leadership, Ericsson has focused heavily on 5G technology development and deployment, positioning the company as one of the global leaders in next-generation telecommunications infrastructure.

Personal life

Ekholm is married to Madeline, with whom he has four children, including a pair of twins. Despite his high-profile career, he maintains a relatively private personal life, focusing on his family and professional responsibilities.

He holds dual Swedish and American citizenship.

Controversies

ISIS payment allegations

The most explosive controversy of Ekholm's tenure involved revelations that Ericsson may have made payments to the terrorist group ISIS (Islamic State in Iraq and Syria) to operate in ISIS-controlled territory.

According to investigations by the International Consortium of Investigative Journalists (ICIJ), Ericsson sought permission from ISIS to work in an ISIS-controlled city and paid protection money to smuggle equipment through ISIS-held zones on a route known as the "Speedway."

The day after Ekholm admitted that the company might have paid ISIS, Ericsson's share value plunged by more than $4.4 billion, representing over 10% of the company's market capitalization.

$1 billion DOJ settlement (2019)

In 2019, Ericsson agreed to pay more than $1 billion to settle a corruption case with the US Department of Justice. The settlement covered accusations that the company bribed officials and falsified records.

As part of the settlement, Ericsson paid more than $520 million for violating the Foreign Corrupt Practices Act in Djibouti, and more than $458 million for violations in China, Djibouti, Indonesia, Kuwait, Saudi Arabia, and Vietnam.

Ekholm called the scandal "unacceptable" and vowed to overhaul the company's compliance system.

Breach of settlement and additional penalties (2023)

The US Department of Justice determined that Ericsson had breached its 2019 criminal settlement by failing to fully disclose misconduct in Iraq, including possible payments to ISIS.

In March 2023, Ericsson pleaded guilty to violating the anti-bribery provisions of the Foreign Corrupt Practices Act and agreed to pay an additional $206 million penalty. Prosecutors noted this came on top of the $520.6 million penalty from 2019 over what they described as a "yearslong campaign of corruption."

Shareholder rebukes

Ericsson's shareholders handed Ekholm an unusual rebuke in consecutive years. In both 2022 and 2023, shareholders—including the giant Swedbank Robur asset manager and groups representing small investors—voted to hold Ekholm and the board accountable for mishandling the Iraq bribery scandal.

Shareholders refused to discharge Ekholm and the company's board of directors from liability, meaning they could potentially face financial responsibility for their handling of the corruption probe.

Ekholm's response

Ekholm has acknowledged a continued pattern of "hugely embarrassing" and "unacceptable misconduct" at Ericsson. Following the 2023 plea agreement, he stated that "the matter of the breaches is now resolved" and that the company could "focus on executing our strategy while driving continued cultural change across the company with integrity at the center of everything we do."

In 2024, an independent compliance monitor appointed by the DoJ certified Ericsson's anti-corruption compliance program as having "satisfied requirements" and "functioning effectively."

Awards and honors

  • H.M. The King's Medal of the 12th size (2015) – Awarded in the Order of the Seraphim ribbon by King Carl XVI Gustaf of Sweden for contributions to Swedish business
  • Member, Royal Swedish Academy of Engineering Sciences (2010)
  • Honorary Doctorate – KTH Royal Institute of Technology, Sweden

Board memberships

Current

  • Ericsson – President and CEO
  • Trimble – Board of Directors
  • KTH Royal Institute of Technology – Board (Chairman 2010–present)

Former

  • Alibaba Group – Board of Directors (2015–2022)
  • Nasdaq OMX – Board of Directors (former Chairman)
  • Investor AB – Various portfolio company boards

References


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