Management

Role of the Board
The Board of directors is accountable to shareholders for the performance of the Company. Its role includes the establishment, review and monitoring of strategic objectives, approval of major acquisitions, disposals and capital expenditure and oversight of the Group's systems of internal control, governance and risk management. A schedule of matters reserved for the Board's decision details key aspects of the Company's affairs that the Board does not delegate (including, among other things, approval of business plans and budgets, material expenditure and alterations to share capital).

Board composition
The Board is chaired by Sir Mark Moody-Stuart. The chairman is responsible for leading the Board and for its effectiveness. And the chief executive is responsible for the execution of strategy and the day-to-day management of the Group, supported by the Executive Board which the chief executive chairs. Sir Rob Margetts is the senior independent non-executive director.

Directors' independence
The Board has a strong independent element and currently comprises, in addition to the chairman, five executive and ten non-executive directors, eight of whom are independent according to the definition contained in the Code.

Board effectiveness
A formal evaluation of the performance of the Board, its committees and individual directors is carried out annually by means of detailed questionnaires and interviews.

Independent review
A formal evaluation of the performance of the Board, its committees and individual directors is carried out annually by means of detailed questionnaires and interviews. Once again in 2006, the results of the evaluation were collated and analysed by an independent reviewer (from the London Business School) and were presented to the Board. The aim is to ensure continuous improvement in the functioning of the Board.  The analysis confirmed that the Board and its committees were functioning correctly.