Board Composition and Succession Planning

• Identification and assessment of potential candidates to positions on the Board based on predefined criteria
  
• Yearly assessment of the Board and the Board Committees with regard to performance, constitution and independence
  
• Yearly assessment of the performance of each member of the Group Management
  
• Identification and assessment of potential candidates to the position of CEO
  
• Review of candidates for other Group Management positions as proposed by CEO
  
• Yearly review and assessment of the succession planning and emergency succession list for positions of Group Management  

A well-balanced Board composition is essential, with an independent majority and an appropriate mix of members that ensures both continuity and renewal. The Board of Directors should collectively reflect a diverse range of skills, qualifications, and experiences required to effectively fulfil its duties. Board members with a broad range of experience are valued over those with deep specialization in a single area. Where needed, the Board engages external experts to provide training or advice on specific topics. In addition to a structured onboarding program for newly elected members, regular training as well as site and customer visits form an integral part of Board’s development.

The Nomination and Compensation Committee maintains a skills and experience matrix to assess current Board members and to identify potential gaps that are considered in the Board succession planning process. The required skills and experience are aligned with the company’s strategy, objectives, business model, geographic footprint, risk profile, and corporate culture. These competencies are reviewed annually by the Nomination and Compensation Committee to ensure continued relevance and alignment with the company’s evolving needs.