BP 2015 Annual Report Download - page 78

BP Annual Report and Form 20-F 201574
Chairman’s and nomination committees
Chairman’s introduction
I am pleased to report on the two board committees that I chair. Both
actively sought to develop the membership of the board and its
governance during the year.
Carl-Henric Svanberg
Committees’ chair
Chairman’s committee
Role of the committee
To provide a forum for matters to be discussed among the non-executive
directors.
Key responsibilities
• Evaluate the performance and the effectiveness of the group chief
executive.
• Review the structure and effectiveness of the business organization.
• Review the systems for senior executive development and determine
the succession plan for the group chief executive, the executive
directors and other senior members of executive management.
• Determine any other matter that is appropriate to be considered by
non-executive directors.
• Opine on any matter referred to it by the chairman of any committees
comprised solely of non-executive directors.
Members
The committee comprises all non-executive directors who join the
committee at the date of their appointment to the board. The chief
executive attends the committee when requested.
Activities during the year
The committee met seven times in the year. During the year the
committee:
• Monitored the progress of the Gulf of Mexico litigation and, in particular,
considered the proposals which led to the Agreements in Principle to
settle federal and state claims and claims made by local government
entities.
• Reviewed BP’s strategy in light of the continuing decline in oil prices.
• Considered the succession and organization of the executive team.
• Evaluated the performance of the chairman and chief executive.
Geopolitical committee
Chairman’s introduction
I am pleased to report on the work of this committee that was formed
during 2015. I have been asked to chair this committee until the 2016
AGM, when I will retire from the board and Sir John Sawers will take the
chair.
Antony Burgmans
Committee chair
Role of the committee
The committee monitors the company’s identification and management of
geopolitical risk.
Key responsibilities
• To monitor the company’s identification and management of major and
correlated geopolitical risk and to consider reputational as well as
financial consequences:
– Major geopolitical risks are those brought about by social, economic
or political events that occur in countries where BP has material
investments that can be jeopardized;
– Correlated geopolitical risks are those brought about by social, economic
or political events that occur in countries where BP may or may not have
a presence but that can lead to global political instability.
• To review the company’s activities in the context of political and
economic developments on a regional basis and to advise the board on
these elements in its consideration of BP’s strategy and the annual plan.
Members
Antony Burgmans
(chair)
Member and committee chair since
September 2015
Paul Anderson Member since September 2015
Frank Bowman Member since September 2015
Cynthia Carroll Member since September 2015
Phuthuma Nhleko Member since September 2015
John Sawers Member since September 2015
Andrew Shilston Member since September 2015
Carl-Henric Svanberg and Bob Dudley attend all committee meetings and
the executive vice president, strategy and regions and the vice president,
government and political affairs attend as required.
Activities during the year
The committee met twice during the year. During those meetings it
considered:
• The committee’s terms of reference.
• An overview of the company’s current geopolitical risks.
• The relationship of the committee with the International Advisory Board.
• The effect of the oil price on geopolitical matters.
• The company’s relationships with national oil companies.
• The company’s relationships in specific countries and regions.