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 continuous evaluation of the composition of the respective portfolio companies’ boards and Industrivärden’s action plans for value creation. This work is conducted from an overarching ownership perspective with focus 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
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 works actively to identify suitable individuals and maintain the company’s 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. Industrivärden’s representation on the portfolio companies’ respective nominating committees is shown in a table below.
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 continuously evaluates the portfolio companies’ operations and development. When necessary, Industrivärden communicates its views of the company and its management first with the chairman of the respective portfolio company’s board. An open dialog is also conducted with the respectively companies’ CEOs and other senior executives.