Assessing our effectiveness.

Assessing our effectiveness.

The effectiveness of the Board is fundamental to the success of the company and the annual Board evaluation process provides the directors with an opportunity to reflect on their collective and individual performance. Throughout the year, the Board has continued to build on the recommendations from the 2012 external evaluation facilitated by KPMG LLP and good progress has been made in implementing those recommendations. In particular:

  • The Board agenda was reviewed and refined to prioritise strategic proposals to allow more time for discussion, debate and challenge
  • Management information packs were reviewed and refreshed to highlight progress against key performance indicators, strategic initiatives and risk appetite
  • Each executive director continues to provide an update on their respective business areas at each Board meeting increasing each directors contribution to discussion, debate and challenge

In 2013, the Chairman determined that an internally facilitated evaluation would be the most effective method for assessing performance, particularly in light of the Board changes that had taken place during the year. The evaluation was facilitated by the group general counsel and company secretary and the performance of the Board as a whole, the committees and the individual directors were evaluated. The review process was conducted using a series of tailored questionnaires followed by discussion. The review focused on the following areas:

  • Time management and composition
  • Expertise of the Board/committee members
  • Board and committee dynamics
  • Processes and support
  • Oversight
  • Succession planning
  • Priorities for change

The evaluation concluded that the Board was effective overall while recognising scope for improvement in several areas. In particular, the review resulted in the following recommendations:

  • Board packs and management information – Further enhance the format of Board papers to ensure that the information provided is specific and concise and provides the information necessary for the Board to discharge decision making responsibilities effectively
  • Overseas and off-site Board meetings – The company secretary should continue to facilitate a programme of overseas and off-site Board meetings in order to increase the Board’s knowledge of each of the Group’s key business divisions
  • Strategic planning – The Board should more frequently revisit the progress on the discussions undertaken during the annual strategy day at appropriate points during the year
  • Stakeholder views – The Board should continue to receive regular updates on the evolving views of all key stakeholder groups

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