Board effectiveness and individual performance of Directors

An assessment of the performance of the Board and its individual Directors was commenced during the year. The Board’s effectiveness was assessed by means of a detailed questionnaire which was designed by the Company Secretary and completed by each Director. The questionnaire covers 16 areas including the processes for setting the strategy of the Company, monitoring business performance, corporate governance and the effectiveness of the Executive Directors, Non-Executive Directors (including the Chairman) and the Board’s Committees. The results were fed back to the Chairman and a full debate is scheduled to take place in the Board before the end of 2009.

An assessment of each individual Director’s performance is undertaken annually. The performance of each Director is measured against 12 criteria with peers being requested, confidentially, to rate that Director’s performance by reference to the criteria. The Chairman then discusses the overall result for each Director with him or her and any concerns are addressed.