Annual Report 2009

Sivu: 96 Sivu: 94 Sivu: 95 Sivu: 93 Sivu: 92 Sivu: 91 Sivu: 89 Sivu: 90 Sivu: 87 Sivu: 88 Sivu: 86 Sivu: 85 Sivu: 84 Sivu: 83 Sivu: 82 Sivu: 81 Sivu: 80 Sivu: 79 Sivu: 78 Sivu: 77 Sivu: 76 Sivu: 75 Sivu: 73 Sivu: 74 Sivu: 72 Sivu: 71 Sivu: 70 Sivu: 69 Sivu: 68 Sivu: 67 Sivu: 66 Sivu: 65 Sivu: 64 Sivu: 63 Sivu: 62 Sivu: 61 Sivu: 59 Sivu: 60 Sivu: 56 Sivu: 57 Sivu: 58 Sivu: 55 Sivu: 54 Sivu: 53 Sivu: 52 Sivu: 51 Sivu: 50 Sivu: 49 Sivu: 48 Sivu: 47 Sivu: 45 Sivu: 46 Sivu: 44 Sivu: 43 Sivu: 42 Sivu: 40 Sivu: 41 Sivu: 39 Sivu: 38 Sivu: 37

Sivu: 36

CORPORATE GOVERNANCE REPORT » Board structure: The Board as a whole possesses the right skills and background for addressing issues facing the Company and the existing composition of the Board, including the current Committee structure, is appropriate. » Board meetings: The number of Board meetings is sufficient, the meetings are chaired effectively and the time at the meetings is used efficiently, the meetings are well planned and the Board receives adequate materials in advance of the meetings. » Other: Information provided between meetings is adequate and timely and the staff and related support to the Board and the Committees functions adequately. The Committee shall according to the terms of reference be composed of four non-executive Directors. The Chairman of the Board may chair the Compensation Committee. The other Committee members are to be independent of the Company and its executive Management. The Company’s Compensation Committee for the year 2009 was not chaired by the Chairman of the Board and was also in other respects in compliance with these requirements. The members of the Compensation Committee were William A. Rand, Chairman of the Committee, Lukas H. Lundin, Magnus Unger and Dambisa F. Moyo. The Compensation Committee held three meetings in 2009. Audit Committee Remuneration of Board Members The remuneration of the Chairman and other Board members follows the resolution adopted by the AGM. The 2009 AGM decided that the Board shall receive a total compensation equal to SEK 3,500,000. The Chairman was awarded an amount of SEK 800,000 and each other Board member, with the exception of the CEO, an amount of SEK 400,000. The AGM further decided to award SEK 100,000 for each Board Committee assignment, however, limited to a total of SEK 700,000 for Committee work. The remuneration of the Board of Directors is detailed further in the schedule below and in the notes to the Annual Report – see Note 42 on page 80. The function of the Audit Committee is to assist the Board in ensuring that the Company’s financial reports are prepared in accordance with all laws and accounting practices applicable to a company listed on the NASDAQ OMX Stockholm. The Audit Committee is to supervise the Company’s financial reporting and the efficiency of the Company’s internal controls, internal audit and risk management. The Audit Committee therefore reviews, on behalf of the Board, the Company’s quarterly (Quarter 1 and Quarter 3) interim financial statements, reviews and makes recommendations to the Board in relation to the Company’s six month and yearly financial statements, reviews the audit fees, ensures maintenance of, and compliance with, the Company’s internal control systems and regularly liaises with the Group’s external auditors as part of the annual audit process. The Audit Committee shall according to the terms of reference be composed of three non-executive Directors, the majority of which shall be independent of the Company and the executive Management. At least one member of the Committee is also to be independent of the Company’s major shareholders. The Company’s Audit Committee for the year 2009 was in compliance with these requirements. The members of the Audit Committee were William A. Rand, Chairman of the Committee, Magnus Unger and Asbjørn Larsen. The Audit Committee held six meetings in 2009. THE BOARD COMMITTEES The Board has established a Compensation Committee and an Audit Committee. The terms of references of each Committee are included in the Rules of Procedure of the Board, which are adopted annually by the Board. Compensation Committee The function of the Compensation Committee is to receive information on, and determine matters regarding, the compensation of the CEO and other executives of the Company. The objective of the Committee in determining compensation for executives is to provide a compensation package that is competitive and motivating, will attract and retain qualified executives and will encourage and promote performance. Board and Committee Meeting Attendance and Remuneration Name Ian H. Lundin C. Ashley Heppenstall Lukas H. Lundin William A. Rand Magnus Unger Asbjørn Larsen Dambisa F. Moyo 1 2 Board of Directors 8/8 7/8 7/8 8/8 8/8 5/8 5/5 Audit Committee Compensation Committee Total remuneration for Board and Committee work1 SEK 800,000 SEK – 3/3 5/6 6/6 5/6 1/1 3/3 3/3 SEK 558,000 SEK 600,000 SEK 600,000 SEK 450,000 SEK 292,000 The total remuneration paid in one financial year may not coincide in all instances with the fees resolved by the AGM due to e.g. timing differences in the accrual and payment of Board fees and Board and/or Committee memberships that arise or change during the year. 2 Dambisa F. Moyo has been a member of the Board and the Compensation Committee as from 13 May 2009. 34 Lundin Petroleum ANNUAL REPORT 2009

Sivu: 36 Sivu: 35 Sivu: 34 Sivu: 33 Sivu: 32 Sivu: 31 Sivu: 29 Sivu: 30 Sivu: 26 Sivu: 27 Sivu: 28 Sivu: 23 Sivu: 24 Sivu: 25 Sivu: 20 Sivu: 21 Sivu: 22 Sivu: 17 Sivu: 18 Sivu: 19 Sivu: 16 Sivu: 11 Sivu: 12 Sivu: 13 Sivu: 14 Sivu: 15 Sivu: 8 Sivu: 9 Sivu: 10 Sivu: 1 Sivu: 2 Sivu: 3 Sivu: 4 Sivu: 5 Sivu: 6 Sivu: 7