Assessment of the Board of Directors and Executive Management

The Board of Directors conducts a self-assessment every year to improve the performance of the Board and its cooperation with Executive Management.
 

Assessment criteria

The self-assessment process includes all members of the Board of Directors and Executive Management. The chairman has the overall responsibility for conducting the yearly self-assessment. The self-assessment is facilitated every third year by external consultants, who interview all members of the Board of Directors and Executive Management as well as the secretaries to the Board and the board committees. For the subsequent two years, the self-assessment is facilitated by the secretary of the Nomination Committee and is based on written questionnaires to all members of the Board of Directors and Executive Management. The process, whether it is facilitated internally or by external consultants, evaluates topics such as board dynamics, board agenda and discussions, strategy, culture, executive succession, board composition, succession and training. In addition, each individual member of the Board of Directors and Executive Management is provided with feedback from all other board members and executives on their individual performance. The self-assessment is conducted on an anonymous basis. Ratings and comments to individuals are only shared with that individual and the chairman in an anonymised version, while the remaining ratings and comments are consolidated and shared with the board members and executives in an anonymised version.

In 2017, the self-assessment was facilitated by external consultants and, in general, revealed a good performance by the Board of Directors as well as good collaboration between the Board of Directors and Executive Management. The process also resulted in increased focus on the process for strategy development, development of the company culture, executive succession and future board competences.
 

Board Committees

The NominationRemuneration, Audit & Research & Development Committee also conduct an annual self-assessment. The self-assessment by the Committees is based on written questionnaires.

Assessment of Executive Management

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.