The Board’s strategic role
Our aim has been to become a world leader in the agrochemical sector. Consequently, the Board’s mission is to ensure that we have a solid and consistent strategy, achieve business goals, and can deliver shareholder and stakeholder value in the long-term.
The Board also ensures that we adopt international standards and best practice and monitors for our accounting function, risk management processes, internal controls and governance framework.
Each member of the Board has built a sound understanding of the business and our industry. They develop relationships with – and access information from – the management team, in particular on strategy implementation, risk monitoring and assessment of key material issues.
We make full use of each Board member’s skills sets and experience and ensure that each individual has ample opportunity to express opinions and have their say.
Taking informed decisions
The agenda for Board activity is planned twelve months in advance, taking into account the optimal cycle for reviewing recurrent issues such as budgets, financial reporting and strategy. The timing, expectations and goals of these reviews are well understood by both the Board and management team and include detailed updates on core operational areas, investment projects and strategy.
We provide every new Director with a clear picture of our business and operations as soon as they join the Board. This formal induction process also requires learning the regulations pertaining to Board procedures, standing items on the Board’s forward agenda and a round of meetings with key managers. New Directors are also given the opportunity to visit one of our facilities during their induction.
We have adopted the UK Corporate Governance Code definition of ‘independent’ Director. A key criterion is that the individual is free from any conflicts of interest. If such actual or potential conflicts arise, independent Directors are notified and are required to act appropriately.
Leadership by example
The Chairman oversees and guides the Board and is responsible for ensuring its effectiveness by facilitating open communications, developing relations and creating a culture of mutual respect and constructive debate.
There are three Committees chaired by Board members – the Audit Committee, the Nomination and Remuneration Committee and the Strategy Committee.
The Audit Committee’s primary function is to oversee the quality of financial and sustainability reporting and the integrity of information disclosure.
The Strategy Committee reviews and approves divisional and departmental strategy, development projects, acquisitions and significant investment decisions. This requires environmental and social impact competence as our investment activity can impact the local environment and create infrastructure and opportunities for local employment.
The Nomination and Remuneration Committee focuses on remuneration and incentives, staffing requirements at ongoing investment projects, health and safety performance indicators within the management incentive program and reviewing and updating the EuroChem Codes of Conduct.
In line with our Human Resources Policy, we aim to attract the best people with the right talent to complement our skills, irrespective of gender or ethnicity.
Our Board of Directors demonstrates diversity of experience, opinion, and nationality. The gender imbalance across our Group companies is an ongoing issue, as it is for many other businesses in the science, mining and engineering sectors. Nevertheless, we continue to look at ways of improving gender balance in senior roles, including our E-Generation program, which is identifying the bright and motivated young men and women who will lead the Company in the years ahead.
EuroChem has operated a formal Code of Conduct.