Svanberg steps down as head of Ericsson

Carl-Henric Svanberg, the chief executive of Swedish kit vendor Ericsson, is to step down from his role and take the helm of oil and gas giant BP later this year.

Ericsson said Thursday that Svanberg, who has led the firm for seven years as well as being chairman of handset joint venture Sony Ericsson, will take the role as chairman-designate of BP on September 1, 2009. He will assume the full role of chairman of BP on January 1, 2010, by which time he will be based in London and devoting the majority of his time to BP.

Since his appointment to Ericsson in 2003, Svanberg is credited with transforming the company and keeping it on an even keel through some difficult times. During 2003 to 2008 Ericsson’s compounded annual growth was 12 per cent, and over the past five years, the company has generated a total profit of SEK103bn (€9.4bn), Ericsson said.

Svanberg will remain in his position until year-end when he takes on his new assignment and will remain as member of the Ericsson board of directors in the long term.

Hans Vestberg, currently CFO and executive vice president of Ericsson, has been named as Svanberg’s successor, and will take over the reins at the start of 2010.

Svanberg replaces outgoing chairman of BP, Peter Sutherland.