The principal responsibility of the board is to promote the long-term success of the group in a manner consistent with its culture, values and standards and so create and deliver sustainable shareholder value.
The Board is responsible to its shareholders and other stakeholders for the management, performance and long-term success of the Company. It sets and oversees the Group’s purpose and strategy, ensuring that the Group is managed effectively by monitoring internal controls and risk management and acts in the best interests of its shareholders, whilst having regard to its other stakeholders. Further details on how we engage with stakeholders are on pages 83 to 87 of the 2019 Annual Report.
Where a matter is not reserved to the Board or one of its Committees, it has delegated all other matters to the Group Chief Executive Officer who is supported by the Executive Committee.
The Board operates within a formal schedule of matters reserved to it, which is reviewed and updated on a regular basis. The Board meets regularly and provides direction, oversight and detailed review and challenge to management.
In order for it to operate effectively and provide the right amount of time and consideration to relevant matters, the Board delegates authority to its principal Committees detailed below. Its Committees then report, and make recommendations, to the Board to ensure it maintains oversight of the Committees’ activities. The Chairs of the Board Committees also report to the Board after each Committee meeting, as appropriate, on key areas of Committee discussion. More detail on the Committees and their work is described on pages 125 to 137 of the 2019 Annual Report.
The Board also delegates the execution of the Group’s strategy and day-to-day management of the Group to its executive directors, who are supported by the Executive Committee. An effective working relationship between the Board and senior management facilitates both support and challenge, with Board awareness enhanced through regular dialogue including upwards reporting from senior management. Executive Committee members attend Board meetings to present on matters that the Board has requested or requires oversight of.