Volvo 2014 Annual Report Download - page 108

From January 1, 2015, the Group Executive Team has 10 members includ-
ing the CEO. In addition to the CEO, the Group Executive Team comprises
the Executive Vice Presidents of the three Group Trucks divisions, the
Executive Vice President Business Areas, and the Executive Vice Presi-
dents of the fi ve Corporate Functions. The members of the Group Execu-
tive Team report directly to the CEO.
The CEO is responsible for managing the day-to-day operations of the
Volvo Group and is authorized to take decisions on matters that do not
require Board approval. The CEO leads the operations of the Group mainly
through the Group Executive Team but also through individual follow-ups
with the respective Group Executive Team members and the heads of the
Business Areas not represented in the Group Executive Team.
The Executive Vice Presidents of the three Group Trucks divisions
manage the daily operation of the divisions mainly through their respec-
tive Executive Management Team. In addition to taking decisions on mat-
ters related only to the own division, the Truck divisions’ Executive Man-
agement Teams (with the involvement of relevant stakeholders from other
functions) take decisions also on matters that have an impact on or
requires involvement from more than one Truck Division, Business Area
and/or Group Function.
Further, the Business Areas Construction Equipment, Buses, Volvo
Penta and Governmental Sales and some Group Functions have separate
decision foras for important matters called Business Review Meetings,
which are normally headed by a Group Executive Team member.
All the above bodies affect control and monitoring of the Group’s fi nan-
cial development, strategies and targets and take decisions regarding
investments and other matters.
Remuneration to the Group Executive Team
AB Volvo’s Annual General Meeting annually approves a policy on remu-
neration to the Group Executive Team, following a proposal from the
Board. The remuneration policy adopted by the Annual General Meeting
2014 states that the guiding principle is that remuneration and other
terms of employment for the Group Executive Team shall be competitive
in order to ensure that the Volvo Group can attract and retain competent
executives.
The policy also states that the executives may receive variable salary in
addition to fi xed salary. The variable salary may, as regards the President,
amount to a maximum of 75 percent of the fi xed salary and, as regards the
other Group Executive Team members, a maximum of 60 percent of the
fi xed salary. In 2014, members of the Group Executive Team were entitled
to variable salary according to a program for variable remuneration to sen-
ior executives determined by the Board. The performance targets defi ned
in the program for the Group Executive Team members were related to
operating margin and cash fl ow. The purpose of the program for variable
remuneration is to create an incentive for the executives to strive for the
Volvo Group developing in such a manner that the defi ned performance
targets are achieved, thereby constituting a management tool. Accord-
ingly, the performance targets set by the Board for variable remuneration
inter alia relate to the Group’s fi nancial targets for improved operating margin.
The Group Executive Team members have during 2014 participated in
the Group’s long-term, share-based incentive plan for senior executives
comprising the years 2014–2016 which was adopted by the Annual Gen-
eral Meeting 2014. The plan applies during the fi nancial years 2014 until
and including 2016 and consists of three yearly plans. The participants
invest in Volvo shares during each yearly plan, up to a maximum of 15
percent of the fi xed gross base salary for Group Executive Team members
and 10 percent of the fi xed gross base salary for other participants. On
the conditions that the participant remains an employee within the Volvo
Group and also retains the invested Volvo shares for at least three years
after the investment date, one matching share per invested share and a
Group Management
9Group Management
Olof Persson
President and CEO
Joachim Rosenberg
Executive Vice
President Group
Trucks Sales
Torbjörn Holmström
Executive Vice
President Group
Trucks Technology
Education B. Sc. in Business
Administration and
Economics.
M. Sc. Industrial Engi-
neering and Manage-
ment, M. Sc. Financial
Economics, M. Sc.
Business and Eco-
nomics.
M. Sc. Mechanical
Engineering.
Born 1964 1970 1955
Principal
work
experience
President of AB Volvo
and Chief Executive
Offi cer of the Volvo
Group since 2011.
President of Volvo
Construction Equip-
ment 2008–2011.
President of Volvo
Aero 2006–2008.
Member of the Group
Executive Team since
2006. With Volvo
since 2006.
Has held various sen-
ior positions in the
Volvo Group, most
recently as Executive
Vice President Group
Trucks Sales & Mar-
keting APAC 2012–
2014. President of
Volvo Group Asia
Truck Operations
2007–2011. Vice
President Volvo Group
Alliance Offi ce 2007.
Vice President Volvo
Powertrain 2005–
2007. Member of the
Group Executive Team
since 2012. With Volvo
since 2005.
President of Volvo 3P
2003–2011. Prior to
that he has held vari-
ous senior positions at
Volvo Powertrain.
Member of the Group
Executive Team since
2012. With Volvo since
1979.
Board
memberships
Co-chairman of United
Nation’s High-level
Advisory Group on
Sustainable Transport.
Member of the ERT
(European Round
Table of Industrialists)
and the Royal Swedish
Academy of Engineer-
ing Sciences. Member
of the Volvo Board
since 2011.
Holdings in
Volvo, own
and related
parties
164,830 shares,
including 164,779
Series B shares.
36,064 Series B
shares.
64,725 Series B
shares.
104
CORPORATE GOVERNANCE REPORT 2014 CORPORATE GOVERNANCE