Assessment of the Board of Directors and Executive Management

The Board of Directors conducts an annual self-assessment process to improve the performance of the Board and its cooperation with Executive Management. This process is directed by the chairman and is facilitated by internal or external consultants.

Assessment criteria

The assessment process is based on written questionnaires and evaluates the Board’s composition and the skills of its members, including whether each board member and executive participates actively in board discussions and contributes with independent judgement. It is further assessed whether the board member is inspirational and whether the environment encourages open discussion at board meetings.

The self-assessment conducted in 2012 resulted in a further development of the strategy process and a continued focus on succession preparedness.

Audit Committee

The Audit Committee also conducts an annual self-assessment based on written questionnaires.

Assessment of executives

The performance of each executive is continuously assessed by the Board, and once a year the chairman of the Board also conducts a formal interview with each executive.