3. Management
3.1 Delegation of authority
The Board delegates operational authority to the MD/CEO subject to specified limits set out in a delegated authority framework.
The MD/CEO then sub-delegates specific authority to executives. Authority delegated to executives must, in certain circumstances, be exercised with the approval of committees made up of senior executives, including Strategic Review Committees (SRC) established in the geographical regions. All significant new business, any new joint venture and any acquisition and investment opportunities are reviewed and approved by the Group Strategic Review Committee (GSRC).
The function of both the GSRC and regional SRCs is to ensure new business is aligned with the Company’s strategic objectives and to ensure that key risks have been assessed and will be managed.
3.2 Performance evaluation of senior executives
The MD/CEO evaluates senior executives through the Performance Development Review (PDR) process, which is aimed at ensuring that accountabilities, responsibilities and performance are aligned with the future direction of the Company. This process involves:
- a formal review for the current year
- the setting of objectives and a development plan for the following year, and
- a continuous review of performance and development.
Senior executives also participate in a Short-Term Incentive Plan. Details about this plan are set out in the remuneration report on pages 58 to 59 of this Annual Report.
The PDR and Short-Term Incentive Plan evaluations were completed in July 2010 in accordance with the processes disclosed.