Board Effectiveness

The Board recognises the benefits that reviewing the effectiveness of its own performance and that of its Committees can bring, and is conscious that the actions needed to maintain effectiveness will develop over time as the Company, the Board and best practice evolve. Effectiveness is reviewed on an annual basis, and the Corporate Governance and Nomination Committee (the “Nomination Committee”) oversees this process. In 2015, the Board decided that the annual review would be conducted internally. An external review by Egon Zehnder took place in 2014.

The 2015 process was agreed by the Nomination Committee and led by the Senior Independent Director with support from the Company Secretary as required. The evaluation was taken forward by way of questionnaires which were issued to all Board and Committee members. Directors were encouraged to provide additional commentary to the “closed-ended” questions to provide more context to their responses. The results were collated and analysed by the Company Secretary, and the draft output discussed with the Chairman, Senior Independent Director and, in relation to Committees, the relevant Committee chairs. Finalised reports and action plans were presented and agreed by the Board and Committees. The output concluded that the Board and its Committees operated effectively during 2015. A summary of the outcomes is set out in the Corporate Governance Report in the 2015 Annual Report and Accounts, together with a summary of the agreed action plan for 2016. Information on the Committee reviews can be found in the reports from the individual Committees in the Corporate Governance Report in the 2015 Annual Report and Accounts, which is available here.

The Nomination Committee will oversee the implementation of the agreed action plan for the Board and interim updates will be assessed during the year. An update on progress against these actions will be reported in the 2016 Annual Report and Accounts.