RBS 2013 Annual Report Download - page 47
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Corporate governance
45
The Board
The Board has eleven directors comprising the Chairman, two executive
directors and eight independent non-executive directors, one of whom is
the Senior Independent Director.
Name Position Nationality
Philip Hampton Chairman British
Ross McEwan Group Chief Executive New Zealand
Nathan Bostock Group Finance Director British
Sandy Crombie Senior Independent Director British
Alison Davis Independent non-executive director British/USA
Tony Di Iorio Independent non-executive director USA
Robert Gillespie Independent non-executive director British
Penny Hughes Independent non-executive director British
Brendan Nelson Independent non-executive director British
Baroness Noakes Independent non-executive director British
Philip Scott Independent non-executive director British
Biographies for each director and details of which Board Committees they
are members of can be found on pages 39 to 42. The Board considers
that the Chairman was independent on appointment and that all non-
executive directors are independent for the purposes of the Code.
Board Changes
Joe MacHale retired from the Board on 14 May 2013 and Stephen
Hester, Art Ryan and Bruce Van Saun all retired from the Board on 30
September 2013. Ross McEwan and Nathan Bostock were appointed to
the Board on 1 October 2013 and Robert Gillespie was appointed to the
Board on 2 December 2013. Mr Bostock has since confirmed his
resignation although his leaving date is still to be agreed.
Roles and responsibilities
The Board
The Board is the main decision-making forum for the company. It is
collectively responsible for the long-term success of the company and is
accountable to shareholders for financial and operational performance.
The Board has overall responsibility for:
• the establishment of Group strategy and consideration of strategic
challenges;
• the management of the business and affairs of the Group;
• ensuring the Group manages risk effectively through the approval
and monitoring of the Group’s risk appetite;
• considering stress scenarios and agreed mitigants and identifying
longer term strategic threats to the Group’s business operations;
• the allocation and raising of capital; and
• the preparation and approval of the Group’s annual report and
accounts.
The Board’s terms of reference include key aspects of the company’s
affairs reserved for the Board’s decision and are reviewed at least
annually. The terms of reference are available on rbs.com>about us.
Chairman
The role of Chairman is distinct and separate from that of the Group Chief
Executive and there is a clear division of responsibilities with the
Chairman leading the Board and the Group Chief Executive managing
the Group’s businesses on a day to day basis.
The Chairman’s key responsibilities are to:
• provide strong and effective leadership to the Board;
• ensure the Board is structured effectively and observes the highest
standards of integrity and corporate governance;
• manage the business of the Board and set the agenda, style and
tone of Board discussions to promote effective decision-making and
constructive debate;
• facilitate the effective contribution and encourage active
engagement by all members of the Board;
• in conjunction with the Group Chief Executive and Group Secretary,
ensure that members of the Board receive accurate, timely and
clear information, to enable the Board to lead the Group, take sound
decisions and monitor effectively the performance of executive
management;
• ensure that the performance of individual directors and of the Board
as a whole and its committees is evaluated regularly; and
• ensure the Group maintains effective communication with
shareholders and other stakeholders.
Group Chief Executive
The Group Chief Executive has responsibility for all Group businesses
and acts in accordance with the authority delegated by the Board.
The Group Chief Executive’s key responsibilities are to:
• exercise executive responsibility for the Group’s businesses;
• develop and implement strategy approved by the Board;
• act in accordance with authority delegated by the Board;
• consult regularly with the Chairman and Board on matters which
may have a material impact on the Group;
• lead the senior executive team and ensure there are clear
accountabilities for managing the Group’s business and managing
risk; and
• in conjunction with the Group Chairman and Group Secretary,
ensure the Board receives accurate, timely and clear information.