Every year, the Board adopts work procedures for the Board’s work.
The work procedures outline how the Board’s duties should be distributed, including the specific role and duties of the Chairman, instructions for the division of duties between the Board and the President and for the reporting of financial information to the Board. The Board has also adopted specific instructions for the Board’s committees, which are linked to the work procedures.
The Board’s work is mainly performed within the framework of formal Board meetings and through meetings in the respective committees of the Board. In addition, regular contact is maintained between the Chairman of the Board and the CEO in order to discuss ongoing business and to ensure that the Board’s decisions are executed.
In 2019, there were nine regular Board meetings, one extraordinary Board meeting and one statutory Board meeting. The attendance of Board members at these meetings is presented here. The Company’s auditor attended one Board meeting during the year.
During 2019, business cycle management has continued to be high on the Board’s agenda and there was a high focus on volume flexibility in the industrial system and tight cost control across the organization.
Another focus area for the Board has been new technologies and, throughout the year, the Board has paid particular attention to the Group’s strategic focus on disruptive technology trends and initiatives within the areas of digitalization, electrification and automation. During 2019, the Group entered into a number of strategic alliances and partnerships strengthening the Group’s research and development of new technologies. Another focus area has been the strategy for the Group’s truck business in Asia.
The Board also decided on an overall financial plan and investment framework for the Group’s operations, including increased investments in R&D for both electrification and combustion engines to reduce CO2 emissions. In addition, the Board regularly monitors the Group’s earnings and financial position and maintains continuous focus on risk related issues such as overall risk management and ongoing legal disputes and investigations. Further, throughout the year, the Board has devoted considerable time to talent review and succession planning and on the review and follow-up of the Company’s quality work.
By allocating time to business reviews of the Group’s various truck divisions and business areas the Board remains continuously up-to-date on the status and development of the Group’s operations. In June 2019, the Board visited the Company’s operations in Skövde in Sweden and, in October 2019, the Board visited the Group’s operations in Brazil.
One of the Board’s committees, the Business Area Committee was replaced by the Technology and Business Transformation Committee in April 2019. The Board thereby strengthened its focus on new technologies and the development of new business models.