Ericsson has faced a tough financial climate in recent times

The Swedish telecoms group is to reduce the remuneration of its 150 most senior managers by 10%, in a direct response to the criticism.

Its chairman Michael Treschow said: "We have taken into account all the criticism in Sweden about excessive remuneration."

In the past three years Ericsson has halved its global workforce.

It has also worked hard to slash costs, including spinning-off its loss-making mobile phones division into a joint venture with Sony, but it has still seen its share price plummet.

The 10% pay cut for the 150 executives involves the lowering of the variable part of their salaries and the scrapping of a stock options programme.

Ericsson today employs 47,000 people.