The governance and control of the Volvo Group is carried out through a number of corporate bodies in order to create a sound balance of power.
At General Meetings, 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 proposes 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 controlling and evaluating the company’s operations. In addition, the Board appoints the President of AB Volvo, who is also the Chief Executive Officer (CEO). The duties of the Board are partly exercised through its Audit Committee and its Remuneration Committee. The Board also provides the CEO with guidelines and instructions for the daily management of the Group.
The CEO is in charge of the daily management of the Group through primarily two different bodies, the Group Executive Committee and the business areas Boards of Directors.
The Group Executive Committee comprises those who report directly to the CEO. These are the Presidents of the Group’s nine business areas, the President of Volvo Powertrain business
unit, the CFO and the heads of the Group’s staff units. The Group Executive Committee comprises 17 members including the CEO. Meetings, which are led by the CEO, deal with Group-wide issues and issues affecting more than one business area, and supply information concerning the Group’s performance.
The Boards of the business areas control and follow up the business areas' financial development, business plans and goals as well as make decisions regarding, for example, investments. Typically, the CEO or any other member of the GEC is the Chairman of the business areas boards of directors and these comprise mainly other members of the Group Executive Committee.