Volvo 2008 Annual Report Download - page 68

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Annual General Meeting
Remuneration Committee
Audit Committee
Business Areas Business Units
Shareholders
President
Group Executive Committee
Auditors
The Volvo Group Corporate Governance Model
Board
Election Committee
Corporate Governance Report
During 2008, the Board focused specifi cally on adapting the Group’s operations to the present market
conditions; initially to a very strong demand for the Group’s products and during the second half to a sig-
nifi cantly weaker development. The Board has furthermore focused specifi cally on issues pertaining to
the continuous integration of newly acquired operations and on issues relating to the continuous renewal
of the Group’s product portfolio.
Corporate bodies in corporate
governance
The governance and control of the Volvo Group
is carried out through a number of corporate
bodies. At the Annual General Meeting, the
shareholders exercise their voting rights with
regard, for example, to the composition of the
Board of Directors of AB Volvo and election of
external auditors. An Election Committee pro-
poses candidates to serve as Board members,
Board Chairman and external auditors. The
Board is responsible for the Group’s long-term
development and strategy as well as control-
ling and evaluating the company’s operations.
In addition, the Board appoints the President
of AB Volvo, who is also the Chief Executive
Offi cer (CEO). The duties of the Board are
partly exercised through its Audit Committee
and its Remuneration Committee. The CEO is
in charge of the daily management of the
Group in accordance with guidelines and
instructions provided by the Board.
The CEO is in charge of the daily manage-
ment of the Group through primarily two differ-
ent bodies, the Group Executive Committee
and the business areas’ and business units’
Boards of Directors. The Group Executive
Committee comprises those who report
directly to the CEO. The Group Executive Com-
mittee meetings, which are led by the CEO,
deal with Group-wide issues and issues affect-
ing more than one business area/unit, and
sharing of information concerning the Group’s
performance. The CEO or another member of
the Group Executive Committee is the Chair-
man of the Boards of all business areas and
Corporate Governance 2008
64