The active ownership process
Industrivärden’s influence in its portfolio companies is based on sizable ownership stakes and a strong position of trust. From this foundation Industrivärden takes an active ownership role in collaboration with other major owners to build value in the shareholdings.
Active ownership is grounded in Industrivärden’s ownership strategy, continuous evaluation of the composition of the respective portfolio companies’ boards, and action plans for value creation. This work is conducted from an overarching ownership perspective and focuses on the portfolio companies’ boards and managements as well as on strategic matters such as corporate governance, company strategy, company and capital structure, sustainability focus and so on.
Through significant influence, depth of knowledge and long-term involvement, Industrivärden can evaluate performance, lend support and make concrete demands for future value creation.
ACTIVE OWNERSHIP PROCESS
Nominating committee work
Active ownership is exercised through, among other things, involvement in the nomination processes for board elections and elections of the chairman of the board of the respective portfolio companies. A well composed board with competent directors is crucial for a company’s success.
Industrivärden therefore puts strong emphasis on participating on its portfolio companies’ nominating committees and is represented by members from Industrivärden’s executive management and board.
Access to qualified, potential board members is a central success factor, which is why Industrivärden must have own resources to be able to build, structure and utilize a qualified network. Industrivärden invests in portfolio companies with various types of operations and varying needs, which requires a broad network of individuals with various types of expertise.
Active ownership is also exercised through board representation. Industrivärden’s board members and executives, who also serve as AGM-elected directors for Industrivärden’s portfolio companies, must have a current and clear picture of Industrivärden’s views of the respective companies.
Continuous evaluation and influence
Industrivärden also continuously evaluates the CEOs and managements of its portfolio companies, and monitors and – where needed – influences the portfolio companies’ overall development. When necessary, Industrivärden communicates its views of the company and its management first with the chairman of the respective portfolio company’s board. Continuing discussions are also held with the respective company’s CEO.