H&M’s CORPORATE GOVERNANCE STRUCTURE
H&M’s shareholders make the ultimate decision on the company’s
direction, since the shareholders at the annual general meeting appoint
the board of directors and the chairman of the board. The annual
general meeting also elects auditors, decides on the principles of the
nomination committee and selects the members of this committee.
The task of the board of directors is to manage H&M’s affairs on
behalf of the shareholders. The auditors report to the annual general
meeting on their scrutiny. The board of directors establishes a work
plan for the board as well as instructions for the chief executive
officer. Auditing matters are dealt with in the auditing committee,
which is the main channel of communication between the board and
the company’s auditors. The board of directors appoints the chief
executive officer. The chief executive officer in turn appoints the members
of the executive management team and the country managers.
H&M has a matrix organisation.