Annual Report 2011

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CORPORATE GOVERNANCE REPORT 2011 BOARD OF DIRECTORS members. Several aspects of the Board’s work were considered and individual feedback from all of the Board members was received. The overall conclusions were the following: » Board structure The composition of the Board as a whole is appropriate to the Company’s operations, phase of development and for addressing issues facing the Company; the Board members collectively exhibit diversity and breadth in respect of expertise, experience and background and have sufficient knowledge of the Company, its operations, organisation and industry; the composition of the Board Committees is appropriate; the duties and decision-making powers of the Board Committees are clear and well-defined; there should be no term limits or a fixed retirement policy. » Board meetings The number of Board meetings is appropriate; the meetings are well planned with clear agendas; the Board receives adequate materials in advance of the meetings; the Board’s work is well organised, the meetings are chaired effectively and the time at the meetings is used efficiently with sufficient time for presentations and discussions; the members prepare for meetings and participate constructively; the Board focuses properly on competitive, financial and other challenges to promote the interests of the Company and is adequately involved in determination of the Company’s overall goals and strategy; the Board is effective in monitoring the Company’s operational performance and implementation of the strategy. » Other Information received between meetings is adequate and timely; the staff and related support for Board and Committee meetings is adequate; there is sufficient time/opportunity for Committee meetings; the Committees report to the Board in an effective and sufficient manner; there are sufficient contacts with the Company’s auditor to ensure the financial reporting and internal controls are in compliance with rules and regulations; the CEO performance review process is adequate; the Board is well organised to handle a potential crisis situation; holding Board meetings in various operational locations is beneficial; the Board focuses on activities that will help maximise shareholder value. The results and conclusions of the review were presented to the Nomination Committee. Remuneration of Board Members The remuneration of the Chairman and other Board members follows the resolution adopted by the AGM. The 2011 AGM decided that the Board shall receive a total compensation of not more than SEK 4,200,000. 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 1,000,000 for Committee work. In addition, the 2011 AGM approved an amount of SEK 2,500,000 to be paid to Board members for special assignments outside the directorship. The remuneration of the Board of Directors is detailed further in the schedule on pages 54–55 and in the notes to the financial statements – see Note 34 on pages 93–94. Ian H. Lundin Chairman since 2002 Director since 2001 Member of the Nomination Committee Chairman of the Reserves Committee C. Ashley Heppenstall Director since 2001 President and Chief Executive Officer since 2002 Kristin Færøvik Director since 2011 Member of the Compensation Committee Asbjørn Larsen Director since 2008 Member of the Audit and Reserves Committees CR/HSE Board Representative For more information see pages 54–55 46 Lundin Petroleum ANNUAL REPORT 2011

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