Vodafone 2012 Annual Report Download - page 70

68
Vodafone Group Plc
Annual Report 2012
Nominations and
Governance Committee
“ The Nominations and Governance
Committee continues its work of
ensuring the Board composition is right
and that our governance is effective.”
Chairman:
Gerard Kleisterlee (Company Chairman)
Members:
Sir John Buchanan (Deputy Chairman and Senior Independent
Director)
Luc Vandevelde (Independent non-executive director)
Anthony Watson (Independent non-executive director)
Key objective:
to ensure the Board comprises individuals with the requisite skills,
knowledge and experience to ensure that it is effective in discharging
its responsibilities.
Responsibilities:
a leads the process for identifying and making recommendations to
theBoard regarding candidates for appointment as directors, giving
full consideration to succession planning and the leadership needs
ofthe Group;
a makes recommendations to the Board on the composition of the
Nominations and Governance Committee and the composition and
chairmanship of the Audit and Risk, and Remuneration Committees;
a regularly reviews and makes recommendations in relation to the
structure, size and composition of the Board including the diversity
and balance of skills, knowledge and experience and the
independence of the non-executive directors;
a oversees the performance evaluation of the Board, its committees
and individual directors (see page 67);
a reviews the tenure of each of the non-executive directors; and
a is responsible for the oversight of all matters relating to corporate
governance, bringing any issues to the attention of the Board.
Membership
The Committee which I chair comprises a majority of independent,
non-executive directors. Effective from the conclusion of the AGM on
24July 2012, Sir John Buchanan will retire and Philip Yea will join the
Committee. No one other than a member of the Committee is entitled
to be present at its meetings; however, other non-executive directors,
the Chief Executive and external advisors may be invited to attend.
In the event of matters arising concerning my membership of the Board,
I would absent myself from the meeting as required and the Board’s
Senior Independent Director would take the chair.
Main activities of the Committee during the year
During the year the Committee met three times.
The Committee leads the process for appointments to the Board. There
is a formal, rigorous and transparent procedure for the appointment of
new directors to the Board. Candidates are identied and selected on
merit against objective criteriaand with due regard to the benets of
diversity on the Board, including gender.
In July a review of executive succession plans was undertaken. In
addition, the Committee received a commentary from the Chief
Executive concerning the performance of the senior executives.
In March the Committee reviewed the output from the evaluations
ofthe Board and committees’ performance in the 2011 nancial year
(see “Performance evaluation” on page 67 for further information).
A boardroom diversity policy was introduced during the nancial year.
The Board acknowledges that diversity extends beyond the boardroom
and supports management in their efforts to build a diverse organisation
throughout the Group. It endorses the Company’s policy to attract
anddevelop a highly qualied and diverse workforce; to ensure that
allselection decisions are based on merit and that all recruitment
activitiesare fair and non-discriminatory. The policy acknowledges the
importance of diversity, including gender, to the effective functioning
ofthe Board and focuses on our aspiration to have a minimum of 25%
female representation on the Board by 2015. Subject to securing
suitable candidates, when recruiting additional directors and/or lling
vacancies which arise when directors do not seek re-election, we will
seek to appoint new directors who t the skills criteria and gender
balance that is in line with the Board’s aspiration. We continue to focus
on encouraging diversity of business skills and experience, recognising
directors with diverse skills sets, capabilities and experience gained
fromdifferent geographic and cultural backgrounds enhance the Board.
(Further information, including the proportions of women in senior
management, is shown in “Our people” on pages 34 to 35, and within
the organisation overall, is contained in our 2012 sustainability report at
www.vodafone.com/sustainability).
This year, when reviewing the re-election of directors at the AGM in July,
the Committee took account of the fact that Luc Vandevelde will have
served nine years as of 31 August 2012. The Code suggests that length
of tenure is a factor to consider when determining the independence of
non-executive directors. The Board has considered the matter carefully
and considers that Luc Vandevelde remains independent. His length of
service and resulting high degree of knowledge and understanding of
the Company, are of great benet to shareholders and add signicantly
to the strength of the Board.
In the year ahead the Committee will continue to assess what
enhancements should be made to the Board’s and committees’
composition and will continue to monitor developments in corporate
governance to ensure the Company remains at the forefront of good
governance practices.
Gerard Kleisterlee
On behalf of the Nominations and Governance Committee
22 May 2012
Corporate governance (continued)