SKF Care defines the Group’s approach to securing sustainable, positive development over the short, medium and long term. SKF applies the principles of sound corporate governance as an instrument for increased competitiveness and to promote confidence in SKF among all stakeholders. Among other things, this means that the company maintains an efficient organizational structure with clear areas of responsibility and clear rules for delegation, that the financial, environmental and social reporting is transparent and that the company in all respects maintains good corporate citizenship.
The corporate governance principles applied by SKF are based on Swedish law, in particular the Swedish Companies Act and the Swedish Annual Accounts Act, and the regulatory system of NASDAQ Stockholm AB (Stockholm Stock Exchange).
Swedish Code of Corporate Governance
SKF applies the Swedish Code of Corporate Governance (the “Code”). The Code was introduced in 2005 and is available at the website of the Swedish Corporate Governance Board. The board's role is to keep the Code up to date and to provide norms and standards for what is regarded as good corporate governance practice within Swedish listed companies. The Swedish Corporate Governance Board has published a brochure as a service to investors wishing to understand Swedish corporate governance. See links to the homepage of the Swedish Corporate Governance Board and the brochure below.
Corporate Governance Report
SKF's Corporate Governance Report has been prepared in accordance with the Code and the Swedish Annual Accounts Act. The auditor of the Company has read and performed a statutory examination of the report.
General information about how the company is managed
The shareholders’ meeting is the company’s highest decision-making body. The Annual General Meeting of shareholders shall be held within six months after the end of the financial year. At the Annual General Meeting the shareholders exercise their voting rights for e.g. the composition of the Board of Directors, adoption of principles of remuneration for Group Management and election of external auditors. SKF has issued A and B shares. An A share entitles the shareholder to one vote and a B share to one-tenth of a vote.
The Board of Directors has a responsibility for the company’s organization and for the oversight of the management of the company’s affairs and is, together with the President and Group Management defining and continuously monitoring SKF’s vision, mission, values and drivers. The Chairman of the Board of Directors shall direct the work of the Board and monitor that the Board of Directors fulfils its obligations. The Board annually adopts written rules of procedure for its internal work and written instructions.
The President of the company, who is also the Chief Executive Officer, is appointed by the Board of Directors and handles the day-to-day management of the company’s business in accordance with the guidelines and instructions from the Board. The approval of the Board is, for example, required in relation to investments and acquisitions above certain amounts, as well as for the appointment of certain senior managers. The President is supported by Group Management.
SKF is organized in Industrial Sales Americas, Industrial Sales Europe and Middle East and Africa, Industrial Sales Asia, Automotive, Aerospace, and Business and Product Development. The responsibility for end-to-end procurement, manufacturing and logistics is combined into Bearing Operations. Further, there are four Group staff units; Group Finance and Business Transformation, Group Technology Development, Group Legal and Sustainability and Group People, Communication and Quality. Each Group staff unit has its own defined area of responsibility and the task to define strategic directions and fundamental requirements within its area.Policies and instructions are in place to ensure that matters of certain importance are referred to the President and/or the Board of Directors.