RBS 2013 Annual Report Download - page 50
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Corporate governance
48
The Group Secretary advises directors of appropriate external training
and professional development opportunities and internal training is also
provided which is relevant to the business of the Group. Business visits
are also arranged as part of the Group Audit Committee and Board Risk
Committee schedule (details of which can be found on pages 53 and 60)
and all non-executive directors are invited to attend. Directors undertake
the training they consider necessary to assist them in carrying out their
duties and responsibilities as directors.
During 2013, the directors received updates on a range of subjects to
enhance their knowledge, including:
• Parliamentary Commission on Banking Standards -
Recommendations;
• Banking Reform Bill;
• Department for Business, Innovation and Skills (BIS) Proposals on
Transparency and Trust;
• BIS review of Voluntary Code of Conduct for Executive Search
Firms;
• Fourth Capital Requirements Directive (CRD IV);
• Competition Commission’s investigation into statutory audit services;
• Government reforms on executive remuneration and reporting; and
• Developments in European company law and corporate
governance.
The Group Secretary maintains continuing professional development
logs. These are reviewed regularly with directors to assist in identifying
future training and development opportunities that are specific to the
individual director’s requirements.
Information
All directors receive accurate, timely and clear information on all relevant
matters and have access to the advice and services of the Group
Secretary. In addition, all directors are able, if necessary, to obtain
independent professional advice at the company’s expense.
Time commitment
There is an anticipated time commitment in line with the
recommendations of the Walker Review in respect of general Board
duties and additional time as necessary in respect of committee duties.
However, as stated in the Chairman’s introductory letter to his Corporate
governance report, the time commitment currently required of our non-
executive directors is significant. Each director is required to seek the
agreement of the Chairman before accepting additional commitments that
might affect the time the director is able to devote to his or her role as a
non-executive director. The Board is aware of the other commitments of
the Chairman and the other directors are able to allocate sufficient time to
enable them to discharge their duties and responsibilities effectively.
Election and re-election of directors
In accordance with the provisions of the Code, all directors of the
company are required to stand for election or re-election annually by
shareholders at the company’s Annual General Meeting. The notice of
Annual General Meeting sent to shareholders separately includes details
of the proposed resolutions for the election and re-election of directors.
Performance evaluation
In accordance with the Code, an external evaluation of the Board takes
place every three years. An internal evaluation takes place in the
intervening years.
The 2012 evaluation was conducted externally by a specialist board
evaluation consultancy, and a number of initiatives were implemented
aimed at improving the overall performance and effectiveness of the
Board. These included keeping Board and committee composition under
review; reviewing board and executive succession planning; introducing
further enhancements to Board information packs; and implementing an
expanded remit for the Group Sustainability Committee. These topics will
be kept under regular review as a matter of good practice. However, the
2013 evaluation concluded that the recommendations from the 2012
evaluation were being appropriately addressed.
In 2013, the Board and committee evaluation process was conducted
internally by the Group Secretary.
Performance evaluation process
The Group Secretary undertook a formal and rigorous evaluation by:
• preparing a detailed framework of key themes for discussion and
questions which was used to structure individual meetings held with
each director;
• discussing the outcomes and recommendations with the Chairman;
and
• recommending the outcomes and areas for improvement to the
Board.
Amongst the areas reviewed were Board composition (including
diversity), strategy, risk management, Board meetings and processes,
external relationships, and the quality of support and information provided
to the Board.