Responsibilities and work of the Board of Directors

Responsibilities and work of the Board of Directors

The Board of Directors is mainly responsible for determining Scania’s overall strategies and goals.

Responsibilities of the Board

The Board of Directors is mainly responsible for determining Scania’s overall strategies and goals. The Board also adopts budgets and business plans, examines and approves financial statements, establishes comprehensive policy documents and make decisions on issues concerning investments and divestments.

The Board appoints and adopts instructions for the company’s President and CEO and oversees his work. The Board also approves the salary and other remuneration of the President and CEO, within the framework of the principles adopted by the AGM.

The Board is responsible for ensuring that the organisational structure of the Group is appropriate and regularly evaluating administrative procedures as well as guidelines for management and for investment of company funds.

The work of the Board

The Board of Directors is called to a statutory meeting plus at least four regular meetings per year. The statutory meeting, which is held directly in conjunction with the AGM, approves Rules of Procedure and working mechanisms for the Board and, as appropriate, rules of procedure for its committee.

The Rules of Procedure include regulations on the role of the Chairman of the Board, instructions regarding the division of labour between the Board and the President and CEO as well as instructions for financial reporting to the Board.

Evaluation

The Chairman of the Board pursues a regular dialogue with Board members to evaluate the work of the Board. In addition, a written evaluation is normally carried out each year, in which all Board members are given the opportunity to present their opinions about the Board, including the Chairman, and its work.

The President and CEO is evaluated on a continuous basis by the Board. Once a year, the Board also carries out an evaluation of the President and CEO in which he does not participate.