Vodafone 2013 Annual Report Download - page 53

Chairman’s overview
Compliance with the UK Corporate Governance Code
Throughout the year ended 31 March 2013 and to the date of this document, we complied with the code provisions and applied the main principles
of the UK Corporate Governance Code (the ‘Code’). The FRC has issued a revised version of the Code which applies to nancial years commencing
on or after 1 October 2012. We will report on it for the rst time in our 2014 nancial year and intend to be in compliance. The Code can be found
on the FRC website (frc.org.uk). We describe how we have applied those main principles in this section of the annual report which includes our
statement of internal control and risk management, together with the “Directors’ remuneration” section on pages 67 to 82.
Corporate governance statement
We comply with the corporate governance statement requirements pursuant to the FCA’s Disclosure and Transparency Rules by virtue of the
information included in this “Governance” section of the annual report together with information contained in the “Shareholder information” section
on pages 166 to 173.
Dear Shareholder
At Vodafone, we seek to create a working culture in which honesty, openness and fairness are valued and reinforced at all levels of the
organisation, underpinned by a simple, clear and consistently applied governance framework.
The Board has overall responsibility for the manner in which your Company runs its affairs. How Vodafone achieves its goals matters: stakeholders
rightly expect the highest standards of corporate behaviour in all our activities. Everyone is expected to work in the Vodafone Way and to follow
our Code of Conduct, the details of which we explain on page 66. Central to this is the Company’s compliance function which is embedded within
each of our local businesses and which has senior executive leadership at Group level and has regular and direct interaction with your Board.
To be effective, the Board must have a full understanding of the complexities of our sector, and in its composition it must also reect the diversity
of the societies within which Vodafone operates. The directors are drawn from seven different nationalities. Each director has extensive experience
of emerging markets and international businesses and the majority of them have deep knowledge of the technology and data management
sectors. The recent appointments of Omid Kordestani and, in 2011, Renee James, exemplify your Board’s forward-looking approach to maintain
a high level of informed scrutiny, challenge and guidance as Vodafone’s strategy continues to evolve. My medium-term ambition for the
composition of the Board is to bring in further marketing expertise. For further details, please see the directors’ biographies on page 52.
Gender is an important aspect of boardroom diversity. Vodafone supports the principles outlined in Lord Davies’ report, “Women on boards”,
in February 2011 and aspires to have a minimum of 25% female representation on your Board by 2015. With the departure of Sir John Buchanan
and Michel Combes from the Board and the appointment of Omid Kordestani, that proportion currently stands at 15%. Over the coming year
and as opportunities to appoint arise, we will continue to seek candidates who have both the appropriate skills and who will help achieve the
Board’s gender diversity aspiration.
No board can be effective over the long-term if it remains static in its thinking and passive in the face of rapid changes within both the
Company and the wider industry. Your Board regularly seeks an external evaluation of its own effectiveness. In the spring of 2013, Fon Hague
of Independent Board Evaluation interviewed the directors and senior executives as part of a comprehensive review of the Board’s performance.
Mrs Hague’s ndings are summarised on page 58.
In common with many businesses, Vodafone is operating under tough economic conditions in most of our markets. Measures to preserve the
value of the Company’s core assets will be a critical priority for the Board, as will further development of strategies to deliver growth over the years
ahead. Doing so will require a combination of careful stewardship – underpinned by rigorous risk management processes – and agile decision-
making to capture opportunities to create value for shareholders. I am condent that your Board is well-equipped to deliver against that mandate.
Gerard Kleisterlee
Chairman
21 May 2013
“ Effective corporate governance is an essential
prerequisite to sustainable business performance.
Companies that operate with integrity at all times will
maintain the trust of their investors, customers and
other important stakeholders.”
51 Vodafone Group Plc
Annual Report 2013
Overview Business review Performance Governance Financials Additional information