RBS 2013 Annual Report Download - page 49
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Corporate governance
47
Principal activities of the Board during 2013
In advance of each Board meeting, the directors are supplied with
comprehensive papers in hard copy and/or electronic form. During 2013
there has been an enhanced focus on culture and values, conduct and
customers. These have been recurring themes underpinning Board
discussions during the year and the Board received regular updates on
the cultural change programme. An overview of the principal activities of
the Board during 2013 is shown below.
Each meeting
• Chairman’s Report
• Group Chief Executive’s
Report
• Monthly Results
• Capital, Funding & Liquidity
• Risk Report (including updates
on conduct matters)
• Reports from committee Chairs
• Secretary’s Report (routine
matters for approval / noting)
1st Quarter 2nd Quarter
• UK Retail Deep Dive
• Budget Update
• Markets Strategy Updates
• Remuneration Proposals
• Lending Updates
• Risk Appetite Framework
• Annual Results & AGM Notice
• Board and committee
Evaluations
• Group Internal Audit
Evaluation
• External Auditor Evaluation
• Non-Core Deep Dive
• AGM Preparations
• Q1 Results
• Markets Strategy Updates
• Lending Updates
• Recovery and Resolution
Planning
• Board Session with the
Financial Conduct Authority
• Good Bank/Bad Bank Review
• Board Strategy Offsite
• Succession Planning
3rd Quarter 4th Quarter
• Good Bank/Bad Bank Review
• Parliamentary Commission on
Banking Standards
Recommendations
• Interim Results
• Lending Updates
• Board Evaluation Update
• RBS Citizens Deep Dive
• Board Session with the
Federal Bank of Boston
• Launch of Strategic Review
• Review of Capital Position
• Independent Lending Review
• Board Session with the
Prudential Regulatory Authority
• Corporate Banking Deep Dive
• Q3 Results
• Markets Deep Dive
Other senior executives, such as the Group Chief Risk Officer and the
Head of Conduct and Regulatory Affairs, also attend Board meetings as
required to present reports. Divisional Chief Executives, accompanied
where appropriate by other senior executives from the division, attend
Board meetings to present the divisional deep dives. This provides the
Board with an opportunity to engage directly with divisional management
on key issues and supports the Board’s succession planning activity.
Board effectiveness
Skills and experience on the Board
The Board is structured to ensure that the directors provide the Group
with the appropriate balance of skills, experience and knowledge as well
as independence. Given the nature of the Group’s businesses,
experience of banking and financial services is clearly of benefit, and we
have a number of directors with substantial experience in that area, but
the Board also benefits from directors with experience in other fields.
The table below illustrates the breadth of experience on the Board.
• Retail Banking
• Risk
• Finance & Accountancy
• Private Equity
• Investment Banking
• Insurance & Actuarial
• Manufacturing
• Government & Public Sector
• Consulting
• Chief Executive
• Technology
• Retailing
• Utilities
Board committees also comprise directors with a variety of skills and
experience so that no undue reliance is placed on any individual.
Induction and professional development
Each new director receives a formal induction on joining the Board, which
is co-ordinated by the Group Secretary. This includes visits to the
Group’s major divisions and meetings with directors and senior
management. Each induction programme has a core element that the
director is required to complete with the remainder of the programme
tailored to the new director’s specific requirements. An example of an
induction programme for a new non-executive director is set out below:
Core meetings Tailored elements
Group Chairman
Group Chief Executive
Group Finance Director
Senior Independent Director
Board committee Chairs
Group Secretary
Group Chief Risk Officer
Head of Conduct and Regulatory Affairs
Group Treasurer
General Counsel
External Auditor
External Counsel
Divisional Chief Executives
Divisional visits (UK and
overseas)
Group Finance
Group Risk
Group Internal Audit
Group Tax
Investor Relations
Group Strategy
Group Communications
Institutional Investors
Ross McEwan and Nathan Bostock joined the Board on 1 October 2013.
Mr Bostock has since confirmed his resignation, although his leaving date
is still to be agreed. Robert Gillespie joined the Board on 2 December
2013. Both Mr McEwan and Mr Bostock were serving executives in the
Group prior to their appointment to the Board and as such their induction
has been focussed on enhancing their knowledge of Board matters and
continuing to build relationships with Board members. A comprehensive
induction programme was prepared for Mr Gillespie and is underway.