Institutionalization of Nomination Committees in Swedish Corporate Governance
Associate Professor Markus Kallifatides, Assistant Professor Pernilla Petrelius Karlberg, and PhD Lars Grönberg
The development of corporate governance in Sweden, and the particular practice or governance mechanism of shareholder-appointed nomination committees, is investigated and evaluated. In 2005, a formalized Code of Conduct was incepted. In accordance a wide range of Swedish large and midsized listed companies have included a nomination committee in their governance structure which has created a fifth "governance body", next to the AGM, the Board, executive management and the auditor, making for a unique Swedish practice.
We focus on two related questions, posed both in terms of legitimacy and efficiency; what are the consequences of the nomination committee and secondly, is it working as it was intended by the initiators of the code? Overall, we theorize our materials, emanating from interviews, generally accessible data, uniquely collected data, and other research efforts, in terms of a culturally embedded, boundedly rational dynamic process of institutionalization.