Board Achievement, Performance Evaluation and Training

The Nominations Committee oversees the procedure for appointment of new Directors to the Board. All Directors joining the Board submit themselves for election at the AGM following their appointment and once every three years thereafter. Non-Executive Directors are appointed for a three-year term and normally serve a second three-year term subject to performance review and re-election. Beyond this a third three-year term may be served subject to rigorous review.

During the year ended 30 June 2009, the Board undertook a formal and structured process of evaluation of the performance of the Board, its Committees and individual Directors. Last year the performance evaluation was carried out using independent external consultants, Independent Audit Limited. This year ended 30 June 2009, the Board decided that it would be appropriate to carry out the performance evaluation internally using a questionnaire completed by all Board members and the Group General Counsel and Company Secretary.

Central to the evaluation process are the Board’s annual review of business strategy and the objectives and performance targets set by the Board each year for itself, its Committees and for the Group Chief Executive, and through him for the Executive Team, against which overall performance is measured. In this way the evaluation is undertaken within clear parameters linked to overall strategy, operational and financial performance and the role and contribution made by the Board, its Committees and individual Directors in the attainment of agreed objectives and targets.

The results of the evaluation were presented to the Board in July 2009, and it was agreed that the Chairman would conduct one-to-one discussions with each Board Member in respect of the evaluation results. Following on from these meetings the Chairman, together with the Group General Counsel and Company Secretary, will develop and submit an action plan to the Board to implement the recommendations arising from the evaluation and the one-to-one discussions.

Employment policy and involvement
The Group is committed to developing the talents of its employees so that they can maximise their career potential and to providing rewarding careers in an atmosphere that ensures equal opportunities for all. Selection for employment and promotion is based on the objective assessment of ability and experience, giving full and fair consideration to all applications (including individuals with disabilities) for employment, and the Group is committed to ensuring that its workplaces are free from unlawful discrimination of any sort. The Company strives to ensure that its policies and practices provide equal opportunities in respect of issues such as training, career development and promotion for all existing or potential staff irrespective of gender, race, ethnic origin, colour, religion, physical disability, marital status, sexual orientation or age. Every effort is made to retain and support employees who become disabled whilst working within the Group.

The Board recognises that employee engagement is a key factor in the long-term success of the Company and has implemented a comprehensive employee engagement programme with the aim of creating a strong, shared culture. All employees are invited to take part in an engagement survey each January and the results of this survey are fed back to each operating division who use the results to formulate a plan for improving engagement during the year ahead.

A key part of effective employee engagement is communication. The Company ensures that all significant events, economic factors and financial updates and the impact of these on the performance of the Company are communicated to employees through email alerts and regular newsletters. The Executive Committee regularly brief senior management via telephone conference calls which allow them to ask questions and enter into discussion. The Board and the Executive Committee also visit operating divisions and working sites in order to talk to employees face to face and get first hand experience of employees’ aspirations and concerns.

The Group runs a Graduate Recruitment and Development Programme consisting of a two year multi-disciplinary programme of both on-job and off-job modules. Thirty graduates have recently completed the first two year programme and have all secured full-time roles with the business and five graduates are currently entering their second year of the programme.

Succession planning is in place across the Group and there are currently four leadership development programmes in place to assist with the development of individuals as part of the succession plan.

The Group is committed to employee training and development at all levels of the organisation and has introduced a suite of leadership and management development programmes aimed at all levels within the organisation from graduates and middle management to senior management. The programme is designed and delivered internally and is tailored to the needs of the business.

Following shareholder approval at the 2008 AGM, the Company launched, in February 2009, a savings related share option scheme to encourage employee involvement in the Company’s performance. 39% of eligible employees currently participate.