The Directors have established an Audit and Risk Committee, a Remuneration Committee, a Nomination and Governance Committee and a Sustainability and Culture Committee. The members of these committees are appointed principally from among the independent directors and all appointments to these committees shall be for a period up to three years, which may be extended provided the members continue to be independent. The terms of reference of the committees have been drawn up in accordance with the provisions of the Corporate Governance Code. A summary of the terms of reference of the committees is set out below, except for Sustainability and Culture Committee whose first formal meeting is scheduled for 26 July 2021 and its terms of reference will be summarized once they are approved. Each committee and each director has the authority to seek independent professional advice where necessary to discharge their respective duties, in each case at the Company's expense.
|Committee||Members (c designates chairman)||Independence|
|Audit and Risk||Simon Duffy (C), Enrique Dupuy de Lome Chavarri and Charlotte Pedersen||100%|
|Nomination and Governance||William A. Franke (C), Barry Eccleston and Simon Duffy||67%|
|Remuneration||Barry Eccleston (C), Peter Agnefjäll and Charlotte Andsager||100%|
|Sustainability and Culture||Charlotte Pedersen (C), Anthony Radev and Andrew Broderick||67%|
The Audit and Risk Committee assists the Board in discharging its responsibilities with regard to (a) financial reporting; (b) narrative reporting, including reviewing of the content of annual reports and accounts and advising the Board on whether, taken as a whole, reports are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s performance, business model and strategy; (c) internal controls and risk management systems; (d) whistleblowing and fraud; (e) internal audit; (f) external audit and (g) cyber security. Where the Audit and Risk Committee is not satisfied with any aspect of the proposed financial reporting by the Company, it shall report its views to the Board, however, the ultimate responsibility for reviewing and approving the annual report and accounts and the half yearly reports remains with the Board.
The Corporate Governance Code recommends that the Audit and Risk Committee should comprise at least three members, who should all be independent non-executive directors, and that at least one member should have recent and relevant financial experience. The membership of the Company's Audit and Risk Committee comprises four members, namely Simon Duffy, Charlotte Pedersen and Enrique Dupuy de Lome Chavarri all of whom are independent non-executive directors. Mr Duffy is considered by the Board to have recent and relevant financial experience and is a chairman of the Audit and Risk Committee. No members of the Audit and Risk Committee have links with the Company's external auditors. The Company therefore considers that it complies with the Corporate Governance Code recommendation regarding the composition of the Audit and Risk Committee.
The Audit and Risk Committee will formally meet at least three times per year and otherwise as required. Chairman of the Board, Group Chief Executive Officer, Chief Financial Officer, Chief Digital Officer, other directors, Company’s risk, compliance and internal audit functions and representatives from the Company’s finance function may be invited to attend all or part of any meeting as and when appropriate and necessary. The Company's external auditor will be invited to attend meetings of the committee on a regular basis.
The Nomination and Governance Committee assists the Board in discharging its responsibilities relating to the composition of the Board. It is further responsible for evaluating the balance of skills, knowledge and experience on the Board, the size, structure and composition of the Board, retirements and appointments of additional and replacement directors and will make appropriate recommendations to the Board on such matters.
The Corporate Governance Code provides that a majority of the members of the Nomination and Governance Committee should be independent non-executive directors. The Company's Nomination and Governance Committee is comprised of three members, namely William A. Franke, Barry Eccleston and Simon Duffy. The chairman of the Nomination and Governance Committee is Mr Franke. The Company therefore considers that it complies with the Corporate Governance Code's recommendations regarding the composition of the Nomination Committee.
The Nomination and Governance Committee meets formally at least twice a year and otherwise as required.
The Remuneration Committee is responsible for setting the remuneration policy for all executive directors and the Chairman, including pension rights and any compensation payments, and recommending and monitoring the remuneration of the Senior Managers. Non-Executive Directors' fees will be determined by the full Board.
The objective of the Company's remuneration policy is to attract, retain and motivate executive management of the quality required to run the Company successfully without paying more than is necessary, having regard to the views of Shareholders and other stakeholders.
The Remuneration Committee is also responsible for making recommendations for the grants of awards under the Company's share option schemes. In accordance with the Remuneration Committee's terms of reference, no Director may participate in discussions relating to his own terms and conditions of remuneration.
The Corporate Governance Code provides that the Remuneration Committee should comprise at least three members, all of whom should be independent non-executive directors. The membership of the Company's Remuneration Committee comprises three members, namely Barry Eccleston, Enrique Dupuy de Lome Chavarri and Charlotte Andsager all of whom are independent Non-Executive Directors. The chairman of the Remuneration Committee is Mr Eccleston. The Company, therefore, considers that it complies with the Corporate Governance Code recommendations regarding the composition of the Remuneration Committee.
The Remuneration Committee meets formally at least twice each year and otherwise as required.
Terms of Reference for Sustainability and Culture Committee will be summarized once they are approved. Its first formal meeting is scheduled for 26 July 2021.