National Grid 2014 Annual Report Download - page 55

Strategic Report Corporate Governance Financial Statements Additional Information
Finance Committee
Role
Sets policy and grants authority for financing decisions, credit
exposure, hedging and foreign exchange transactions, guarantees
and indemnities subject to the risk appetite approved by the
Board. It also approves other treasury, tax, pension funding and
insurance strategies and, if appropriate, recommends them to
theBoard.
Review of the year
The Finance Committee was established in 2002 to focus on the
Company’s debt book to make sure these matters were given
thenecessary attention.
Following a number of new Non-executive Directors joining the
Board in 2012/13, a presentation on the work and remit of the
Committee was given to the Board in April 2013.
The presentation focused on the risks inherent in the areas the
Finance Committee covers namely, treasury activities, insurance,
pensions and tax. The presentation aimed to help all Directors
understand the role and responsibilities of the Committee.
During the year, external advisors have given presentations to the
Committee on matters such as capital markets, the results of
adebt investor survey and the current state of banks. Additionally,
information was circulated between meetings to make sure the
Committee was kept fully briefed.
This year, we continued to focus on funding plans to take into
account international debt market conditions. The Committee
received regular reports on treasury, tax, insurance, pensions
andcommodity activities to keep us advised of progress and
weapproved recommendations where appropriate.
In July, after seven years as chair of this Committee, I will be
stepping down from the Board. I have been working closely with
Therese to ensure a smooth handover of responsibilities. I have
nodoubt the Committee will continue to perform effectively and
evolve under Therese’s leadership.
Maria Richter
Committee chairman
Matters considered
Examples of matters the Committee considered during the year
include:
• long-term funding requirements;
• setting and reviewing treasury policies;
• treasury performance updates provided at each meeting;
• UK and US tax updates;
• activities of the Energy Procurement Risk Management
Committee in the US;
• activities of the Incentive Risk Management Committee in
theUK;
• credit rating agencies’ views on the Company;
• foreign exchange policy;
• pensions updates, in particular funding of the Company’s
pension deficits; and
• insurance renewal strategy.
Committee membership and attendance
Committee membership during the year and attendance at
meetings is set out below. Attendance is expressed as the number
of meetings attended out of the number possible or applicable for
the individual Director during the year to 31 March 2014.
Name Attendance
Maria Richter (chairman) 4 of 4
Steve Holliday 4 of 4
Andrew Bonfield 4 of 4
Jonathan Dawson 4 of 4
Therese Esperdy10 of 0
Ruth Kelly 4 of 4
Mark Williamson21 of 1
1. Therese Esperdy was appointed to the Committee with effect from 18 March 2014.
2. Mark Williamson stepped down following his appointment as chairman of the Audit
Committee on 29 July 2013.
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