Principal Financial Group 2015 Annual Report Download - page 9

Board refreshment
Consistent with Principal’s evolution as a company, we
are committed to regular refreshment of our Board to
introduce new perspectives into the boardroom while
at the same time maintaining the experience and
continuity that has served the Board well over the
long term. In 2015, we added two new members.
In March 2015, Roger Hochschild (president and chief
operating officer, Discover Financial Services) joined the
Board, bringing his expertise in wealth management,
technology and consumer finance. In August 2015,
Blair Pickerell (former chairman, Asia, Nikko Asset
Management)
joined the Board, bringing expertise
in global asset management and many years of expe-
rience of living and working in Asia. We are pleased
to welcome these talents to our Board, which now
includes 10 independent directors with diverse view-
points, experiences and skills. Our Nominating and
Governance Committee will continue to identify and
recommend qualified Board candidates who can bring
insights to help the company advance and execute on
its strategy.
2015 company performance
Your Board concurs with management’s characteriza-
tion of the 2015 performance—it was a good year,
particularly in light of the macroeconomic headwinds.
But more important is looking at the results through
the lens of long-term growth. Since 2011, the com-
pany has grown operating earnings per share at a
compounded annual rate of 13 percent. The company
has also increased assets under management by
nearly $200 billion or 57 percent, to $527 billion at
Dec. 31, 2015.
Strategic oversight
The Board is not only involved in evaluating strategy
but also in collaborating with management to help
shape it. A special committee of the Board oversees
the strategic dialogue throughout the year, which
includes a two-day strategy meeting with senior
management. At our strategy meeting, we discussed
and debated critical topics affecting the long-term
success of our businesses, including cyber and other
enterprise risks, capital deployment, talent manage-
ment and regulatory developments, as well as macro-
economic influences, demographics and changing
consumer demand. We believe this approach has and
will continue to contribute to this company’s long-
term success.
Our thanks to Larry Zimpleman
Finally, the Board would like to express our gratitude
to Larry Zimpleman, non-executive chairman of the
Board, who retired as CEO at the end of 2015 after
44 years with the company. His vision, dedication and
leadership helped position Principal for a strong and
successful future. He was an outstanding leader who
guided the company through difficult times and built
Principal into the leading company it is today. In both
his personal and professional life, Larry has set an
example for each of us as a leader and teacher with
strong
ethical principles and a deep concern for the
customers, shareholders and employees he served.
I also want to thank you, our shareholders, again for
your support. I truly appreciate the opportunity to
serve as your lead director. As always, I remain interested
in your thoughts and opinions, and I encourage you to
contact me at principal.com/contactliz.
Sincerely,
Elizabeth E. Tallett
Lead Director, Principal Financial Group
72015 Annual Report