European Management Review

TABLE 3

FROM:

The evolution and allocation of employee stock options: adapting US-style compensation to the Swedish business model

Henrik Glimstedt, William Lazonick and Hao Xie

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Table 3. Ericsson's stock option plans, 1998–2002

Option plan Grant date Expiration date Vesting conditions Exercise price a
199802/03/9902/03/06NoneSEK39.92
199903/01/0002/28/0730% after 3 years, 40% after 4 years, 30% after 5 yearsSEK128.00
200001/17/0001/18/071/3 per year on 1st, 2nd, and 3rd anniversaries of grantSEK93.80
2001 (Main)05/14/0105/14/081/3 per year on 1st, 2nd, and 3rd anniversaries of grantSEK30.50
2001 (November)11/19/0111/19/081/3 per year on 1st, 2nd, and 3rd anniversaries of grantSEK25.70
200211/11/0211/11/091/3 per year on 1st, 2nd, and 3rd anniversaries of grantSEK7.80

a Ericsson B shares. Prices have been adjusted to reflect Ericsson's 4:1 stock split on May 8, 2000, and the rights offering of September 12, 2002 that increased Ericsson B shares outstanding by 106.74%.

  Source: Internal Ericsson document, 'Summary – Ericsson Option Plans', March 10, 2003.

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