Corporate governance - the bedrock for a successful Group
We have made good progress during 2010 in
improving the governance of Old Mutual to reflect the changing
business and regulatory environment.
Patrick O'Sullivan
Chairman
Achievements during 2010
- Roll-out of our new Group Operating Model
- Separation of the functions of the Group Audit and Risk
Committee into two Board-level committees
- Addressing other recommendations in the Walker Review
- Board succession and renewal
Priorities for 2011
- Further Board training on Solvency II
- Focus on customer matters
- More Board engagement with the businesses and their key
employees and relationships
- Continued emphasis on delivery of our strategic objectives
We have made good progress in a number of areas relating to the
Group's governance during 2010. The roll-out of our Group Operating
Model, which is designed to provide greater assurance about the
effectiveness of the Company's strategic control over the Group's
businesses, moved successfully from project mode into business as
usual.
At Board level, we established a separate Board Risk Committee
alongside the Group Audit Committee in line with recommendations
contained in the Walker Review. This new committee has made a sound
start and has enabled more time and focus to be dedicated to
risk-specific issues, thereby contributing to the Board's own
discussions of risk appetite and related issues in the run-up to
the implementation of Solvency II. We have also during 2010 widened
the membership of the Board's standing committees so that all of
the non-executive directors now each serve on at least two such
committees.
We have been pleased to appoint three new non-executive
directors to our Board. Roger Marshall joined us in August,
succeeding Richard Pym as Chairman of the Group Audit Committee.
Alan Gillespie was appointed as an independent non-executive
director in November and will replace Rudi Bogni as our Senior
Independent Director when Rudi retires at the 2011 AGM. Since the
year end, we have been delighted to welcome Eva Castillo, the first
woman to join the Board, as a director and as a member of various
Board Committees. Nigel Andrews will leave the Board when he, too,
retires as planned at the forthcoming AGM. Further details of the
new directors are contained in the Board of Directors section
earlier in this Annual Report.
As we implement our medium-term strategy, we have a newly
invigorated view of our core businesses and market strengths and an
increased commitment to strengthening our links with Government,
regulators and other stakeholders, especially in South Africa.
The Board has been actively engaged in monitoring and guiding
progress against the various targets that the Company has set
itself for delivery by the end of 2012. We remain committed to
seeing these through to a successful conclusion and the
effectiveness of our governance arrangements is a key foundation
for achieving them.
Patrick O'Sullivan
Chairman
8 March 2011
