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Corporategovernance
Corporate governance
Nomination and chairman’s committee reports
Ichairboththenominationandthechairman’scommittees.These
committeeshavehadfulleragendasin2010thaninpreviousyearsasthe
eventsandchallengesoftheyearunfolded.Theworkofthecommittees
hasbeeninevitablyintertwinedandforthisreasonIamwritinghereto
introducethereportswhichappearbelow.
Duringtheyearthenon-executivedirectorshavebeenengagedin
ensuringtheboardremainedfocusedonitstasksandorganizingitstimein
aneffectiveway.Thishasnotonlybeenthroughtheformalworkofthe
chairman’scommitteebutalsothroughveryregularinformalcontact
particularlyduringtheheightofthecrisis.
Membershipoftheboardhashadtoevolveovertheyearbothto
addressthenormalsuccessionprocessandtoaddresstheissueswith
whichtheboardhashadtodeal.Thenominationcommitteehasbeen
activelyinvolvedinallofthis.
Carl-Henric Svanberg
ChairoftheNominationandChairman’sCommittees
Nomination committee report
Committee members
Carl-HenricSvanberg–committeechair
SirWilliamCastell
IanDavis(joineduponbecomingchairoftheGulfofMexicocommitteein
August2010)
DouglasFlint(joineduponbecomingchairoftheauditcommitteeinApril
2010)
DrDeAnneJulius
Memberswholeftduringtheyear
SirIanProsser(retired15April2010)
Thecommitteemeteighttimesduring2010.
Committee role and structure
Thecommitteeidenties,evaluatesandrecommendscandidatesforthe
appointmentorre-appointmentasdirectorsandfortheappointmentas
companysecretary.
Thecommitteekeepsthemixofknowledge,skillsandexperience
oftheboardunderregularreview(alwaysinconsultationwiththe
chairman’scommittee)toensureanorderlysuccessionofdirectors.The
outsidedirectorshipsandbroadercommitmentsofthenon-executive
directorsarealsomonitoredbythenominationcommittee.
Thecommitteeconsistsofthechairmanandthechairsofthemain
boardcommittees.
Committee activities
Thecommitteereviewedtheindependenceandrolesofeachofthe
directorspriortorecommendingthemforre-electionatthe2010AGM.
AftertheappointmentofPaulAndersonandIanDavisbeforethe
2010AGMthecommitteekeptunderreviewthelistofpotentialcandidates
fornon-executivedirectorstomeetthedevelopingrequirementsofthe
companyandtheboard.
IthadbeenanticipatedthatDeAnneJuliuswouldstanddownatthe
2011AGM,however,intheautumnof2010,DouglasFlintannouncedthat
hewouldstanddownalsoatthe2011AGMuponhisappointmentas
chairmanofHSBC.Thecommitteehadbeenkeepingtheskillsofthe
boardunderreview,andasaresultBrendanNelsonandFrank‘Skip’
BowmanjoinedtheboardinNovember2010andPhuthumaNhlekoin
February2011.Externaladviserswereinvolvedinallthreeappointments.
Inkeepingunderreviewthebreadthofboardskills,thecommitteetook
intoaccountnotonlythevacanciesthatwereappearingontheboardbut
alsoconsideredwhatwasnecessarytoensurethebreadthofexperience
aroundtheboardtable.Inparticular,theyconsideredtherequirementsof
thegroup’soperationswithinthedevelopingworld.Inalloftheir
deliberationstheyweremindfulofthecontributionmadebytheIAB.
Duringthesummerthecommitteeworkedcloselywiththe
chairman’scommitteeonthesuccessionofBobDudleyasgroupchief
executive.Externaladviserswereusedthroughoutthisprocess.
Thecommitteecontinuestofocusontheevolutionoftheboardas
itmovestoanewstageinitsdevelopment.
Forits2010evaluation,thenominationcommitteeuseda
questionnairetoexaminethecommittee’sperformanceandeffectiveness.
Thecommitteeconcludedthat,overall,ithadworkedwellduringa
challengingyearandthattheboardhadundergonesubstantialchange,
whichhadbeensupportedeffectivelythroughthecommittee.The
evaluationconcludedthatthegoalforthecommitteewastomove
forwardwithabetterrhythmtoensureboardrefreshmentintermsof
skillsanddiversity.
Chairman’s committee report
Committee members
Carl-HenricSvanberg–committeechair
SirWilliamCastell
PaulAnderson(appointed2February2010)
Frank‘Skip’Bowman(appointed8November2010)
CynthiaCarroll
GeorgeDavid
IanDavis(appointed2April2010)
DouglasFlint
DrDeAnneJulius
BrendanNelson(appointed8November2010)
PhuthumaNhleko(appointed1February2011)
Memberswholeftduringtheyear:
ErrollDavis,Jr(retired15April2010)
SirIanProsser(retired15April2010)
Thecommitteemeteighttimesin2010.
Committee role and structure
Thecommitteeiscomprisedofthechairmanandallthenon-executive
directors.
Themaintasksofthecommitteeare:
• Evaluatingtheperformanceandeffectivenessofthegroup
chiefexecutive.
• Reviewingthestructureandeffectivenessofthebusinessorganization
ofBP.
• Reviewingthesystemsforseniorexecutivedevelopmentand
determiningthesuccessionplanforthegroupchiefexecutive,executive
directorsandotherseniormembersofexecutivemanagement.
• Determininganyothermatterthatisappropriatetobeconsideredbyall
ofthenon-executivedirectors.
• Opiningonanymatterreferredtoitbythechairmanofanycommittee
comprisedsolelyofnon-executivedirectors.
BPAnnualReportandForm20-F2010 103