Corporate governance is an expressed part of AP4’s strategy to enhance returns. Areas that are commonly addressed include a company’s strategy, sustainability work, board composition, capital structure, remuneration structure and transparency.
In general AP4 believes that direct dialogue, preferably face to face, with company boards, management and other owners often works best. In order for dialogues to work and be successful, they are conducted in confidence between the parties and not via the media, for example.
AP4’s work with corporate governance aims to: contribute to favourable, long-term sustainable returns, safeguard the best interests both of shareholders and individual companies, take into account the unique circumstances and needs of each individual company, exercise the rights and obligations of AP4’s ownership role responsibly and with a long-term perspective, and promote the development of generally accepted practice in the securities market. Well-functioning stock markets are essential for long-term investors to be able to generate high and long-term sustainable returns.