Volvo 2015 Annual Report Download - page 177

In October 2015, the Board of Directors visited the Group’s businesses in Japan, including a visit at the Experience Center in Ageo.
Board has kept itself continuously updated about the weak markets in Brazil
and China. The declining market in China for particularly construction equip-
ment has resulted in decreased profitability and weakened financial position
for construction equipment customers and dealers, and as a consequence
further provisions for expected credit losses has been recognized.
Finally the Board always devotes considerable time to operational
reviews of the Group’s various business areas, to keep itself updated
about the status and development of the business operation of the Group.
As part of these operational reviews, the Board usually visits a Volvo
Group facility once a year and, as mentioned in the Introductory remarks
earlier in this report, this year’s Board visit went to the Group’s facilities in
Japan in October, which provided additional valuable insights into the
Japanese truck market and the UD Trucks operation in Japan.
Evaluation of the board’s work
During 2015 the Board performed its yearly evaluation of the Board’s
work. The purpose of the evaluation is to develop the Board’s efficiency,
and its working procedures, and to determine the focus of the Board’s
coming work. In addition, the evaluation serves as a tool in determining
the requirements for special competence needed in the Board, and for
analyzing the competence already accessible in the current Board. By
that, the evaluation also serves as input for the Election Committee’s work
with proposing Board members.
In performing the yearly evaluation, the Board members were asked to
complete an individual questionnaire rating, from their own perspective,
different areas relating to the Board’s work. The areas being evaluated for
2015 included, for example, the Board composition, expertise and dynam-
ics, time management and Board support, Board oversight, and priorities
for change. The areas covered by the evaluation may differ from one year
to another to reflect the development of the Board’s work and the Volvo
Group.
Separate evaluations for the Board, the Chairman of the Board, the
Audit Committee and the Remuneration Committee were completed. The
reports over the evaluations were discussed at a Board meeting. In addi-
tion, the results of the evaluations of the Board and the Board Chairman
are shared with the Election Committee.
Remuneration to Board members
The Annual General Meeting resolves on fees to be paid to the Board
Members elected by the shareholders. The Annual General Meeting held
on April 1, 2015, approved fee payments to the Board for the time until the
end of the next Annual General Meeting, as follows.
Volvo’s Chairman should receive a fee of SEK 3,250,000 and each of
the remaining Members elected by the shareholders should receive a fee
of SEK 950,000 with the exception of the President. The Chairman of the
Audit Committee should receive SEK 300,000 and other members of the
Audit Committee SEK 150,000 each. In addition, the Chairman of the
Remuneration Committee should receive SEK 125,000 and other mem-
bers of the Remuneration Committee SEK 100,000 each.
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CORPORATE GOVERNANCE CORPORATE GOVERNANCE REPORT 2015