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Board performance

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Each year, the Board undertakes an effectiveness review, to assess its performance. Our review is a formal, rigorous process that has been facilitated externally since 2004.

Evaluation Statement

A summary of the Board’s progress against the actions arising from its 2014 Board Effectiveness Review can be found below. This is described in more detailed within the 2015 Annual Report.

Theme

Actions taken in 2015

Board Priorities
To refine the Board's priorities in 2015

In 2015 the Board re-focused its time on three key themes:

- focus on core
- accelerate earning growth
- high performance ethic.

A set of execution priorities was developed for each theme and progress against these priorities was reported to the Board on a regular basis.

Exhibiting and upholding the Company’s values
To continue the embedding of cultural change across and deeper into the organisation and provide effective oversight of progress.

The Board Reputation Committee received reports on the progress of cultural change in 2015. 

Members of senior management completed a survey on cultural change, the results of which were shared with the Board Reputation Committee.

The results of the employee opinion survey and a values survey were shared with the Board.

Leveraging Board experience in support of executives
To continue to build effective relationships between the Board and business and functional heads.

John McFarlane has, and will continue to, discuss his key priorities as Chairman with senior management.

Members of the Board Nominations Committee are mentoring high-potential senior managers.

Greater awareness of Board Committee work
To continue to deepen the Board’s focus on the key priorities and main issues facing each of the Board Committees and to ensure that the Board Committee structure remains appropriate and fit for purpose.

The Board Committee structure was updated in 2015, following review by the Board Nominations Committee. The revised structure was approved by the Board and implemented from July 2015.

In line with prior years, all non-executive Directors may attend Board Committee meetings on request, with the agreement of the Committee Chairman. All non-executive Directors were invited to attend Board Risk Committee workshops on risk appetite and on structural reform.

Improvements to the Board appointment process
To continue to ensure that the Board has sufficient visibility of executive succession planning and the talent pipeline.

The non-executive Directors attended a briefing on talent management and succession planning in April 2015.

The Board Nominations Committee considered Group Executive Committee succession in October 2015. In November 2015, the HR Director attended the Board meeting to provide an update on talent and succession.

Director induction
To extend the new Director induction programme to involve senior executives below Group Executive Committee level and to continue to support new Board Committee Chairmen.

Directors have been offered the opportunity of additional meetings with senior executives as part of their induction programmes.

Effective handling of legacy issues
To continue to focus on the existing priority of overseeing the resolution of legacy issues.

Work has continued in 2015 to resolve historical legal and conduct risks. Several outstanding issues have been resolved in 2015.

Dealing more strategically with global regulation
To continue to focus the Board’s time on strategy and strategic options.

Additional time was allocated to the discussion of business strategy at Board meetings in 2015. In particular, the Investment Bank and structural reform were both covered in depth.

The Group’s three strategic priorities: focus on core; accelerate earnings growth; and high performance ethic, were developed with the Board’s collective input.

Representatives from the Group’s UK and US regulators attended Board and Board Committee meetings during the year.

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