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Investor Presentaiton

BOOHOO GROUP PLC CORPORATE GOVERNANCE REPORT CONTINUED ANNUAL REPORT AND ACCOUNTS 2021 // GOVERNANCE MAINTAIN A DYNAMIC MANAGEMENT FRAMEWORK 5. Maintain the board as a well- functioning, balanced team led by the chair The board currently comprises four executive directors and four non-executive directors. The board has an Executive Chairman and a Non-executive Deputy Chairman and intends to recruit a further independent non- executive director to maintain the balance on the board in favour of non-executive directors. Further details of the governance structure are set out at Principle 9. The board as a whole is collectively responsible for the success of the boohoo group and provides entrepreneurial leadership of the group within the framework of effective controls, which enable risk to be assessed and managed. It sets out the group's values and standards and ensures that its obligations to shareholders and other stakeholders are understood and met. ATTENDANCE AT BOARD AND COMMITTEE MEETINGS Guidelines are in place concerning the content, presentation and timely delivery of papers by management to directors for each board meeting so that the directors have enough information to be properly briefed. Where issues arise at board meetings, the Chairman ensures that all directors are properly briefed and, when necessary, appropriate further enquiries are made. The current division of responsibilities between the Chairman and Chief Executive and the Chairman and the Deputy Chairman have each been agreed by the board. It is intended that the board meets at least eight times a year, the Audit Committee at least three times a year, the Nomination Committee at least once a year, the Remuneration Committee at least twice a year and the Risk Committee four times per year. 6. Ensure that, between them, the directors have the necessary up-to-date experience, skills and capabilities The directors' biographies appear on pages 50 and 51. The table below shows the attendance of individual directors at board meetings and committee meetings of which they are members during the year. As at 4 May 2021, the board has met twice since the end of the financial year. All directors have access to the advice and services of the Chief Financial Officer and Company Secretary, who are responsible for ensuring that the board procedures are followed and that applicable rules and regulations are complied with. In addition, procedures are in place to enable the directors to obtain independent professional advice in the furtherance of their duties, if necessary, at the company's expense. Board Eligible to attend Mahmud Kamani 9 Carol Kane 9 John Lyttle Neil Catto 0 Audit Committee Eligible Attended to attend Attended 9 の σ 3 Remuneration Committee Eligible to attend Attended Nomination Committee Eligible to attend 1 Attended st Risk Committee Eligible to attend Attended Pierre Cuilleret 3 2 2 4 4 2 2 Shaun McCabe 3 1 2 2 2 2 2 lain McDonald 9 9 3 3 2 4 4 2 2 Sara Murray 1 1 1 1 Brian Small 9 3 3 2 2 3 3 2 2 σ The board has a blend of different experience and backgrounds. Each of Brian Small, Pierre Cuilleret, lain McDonald, and Shaun McCabe were, prior to appointment, considered to be "independent" non-executive directors under the criteria identified in the QCA Code. The board has access to independent advice, in particular from boohoo's Nominated Adviser (Zeus Capital), TLT LLP (from a legal perspective), and our auditor PKF Littlejohn LLP. During the year, the Remuneration Committee took advice from KPMG, Korn Ferry and Paul Hastings LLP. The board is kept informed on an ongoing basis by the Company Secretary about their duties and any update in relation to legal and governance requirements for the group. Training is provided to the board each regarding their duties. year 7. Evaluate board performance based on clear and relevant objectives, seeking continuous improvement The most recent external evaluation of the board (including sub-committees and individual board members) was completed in early 2021 by Korn Ferry. The evaluation confirmed that the board continued to operate effectively. The evaluation was structured around seven key areas, each addressed through a series of critical questions that all directors responded to through an online survey. The survey was supported by telephone interviews on specific areas for further questioning. The key recommendations from the external evaluation include:- a. Clearer succession plans across the business and its brands; b. A regular review of the key roles and organisation structure to ensure that they remain appropriate as the business continues to scale; c. Consideration of the most appropriate method of engaging non-executive directors in strategic opportunities so that they are fully utilised in the strategic decision-making process; and d. Review the extent to which cultural change is effectively permeating throughout the organisation with the newly appointed Chief People Officer. boohoo's wider succession plan is the role and responsibility of the Nomination Committee, to ensure that the board is comprised of appropriately skilled and capable individuals. The Nomination Committee chair will identify gaps in the skill set required to oversee the group's development, and will seek to recruit suitably qualified individuals. 8. Promote a corporate culture that is based on ethical values and behaviours boohoo is guided by its values of Passion, Agility, Creativity and Teamwork. The company prides itself on its inclusive culture and team spirit, and in operating in a fair and sustainable manner. boohoo takes the welfare of all its employees extremely seriously and continues to invest in its people, who are encouraged to develop and grow with the business. boohoo strives to continually improve the working environment and benefits of its people. This is done by listening to and actioning feedback given through the open Your Voice sessions, and internal HR channels, with immediate attention paid to any concerns raised. boohoo is continually improving the support provided to managers to help ensure they are leading, and ensuring the people in our organisation feel valued and are listened to, shown in the significant investment made to upgrade all the facilities and working environment. Further information can be found on pages 48 to 49 of this report. purpose 9. Maintain governance structures and that are fit for processes and support good decision-making by the board The board has a formal schedule of matters reserved to it for decision, including approval of strategic plans and the annual operating plan, significant investments and capital projects, treasury and risk management policies. All directors take decisions objectively in the interests of the group. Further details of the roles and responsibilities of the directors is set out at principle 6. boohoo continues to look at how to best improve its corporate governance; and as a fast growing company, boohoo is constantly for looking ways to strengthen its board, whilst ensuring that the business is led by people with the right experience, passion and enthusiasm. In order to ensure there are enough independent directors to maintain the balance of the board in favour of non- executive directors, the company will be appointing one more. The search process to recruit a further independent non-executive director is ongoing. The enlarged and strengthened board structure has substantially enhanced the bandwidth to formulate, plan and begin to execute a multi-brand The structure strategy. enables the directors to use their extensive commercial experience in developing the wider group and its strategy for the benefit of the company's stakeholders. Brian Small has been appointed as Deputy Chairman to lead the independent non- executive directors on matters where independence is required. In summary, this structure enables the retention of key skill-sets within the company whilst facilitating the enhancement of the executive director base and the continuing development of the board and committee membership otherwise in line with the QCA Code's key principles. There are four board committees - Audit, Nomination, Remuneration and Risk Committees on the following pages. BUILD TRUST 10. Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders The AGM is an important opportunity for communication with both institutional and private shareholders and also involves a short statement on the company's latest trading position. Shareholders may ask questions of the full board, including the chairs of the Audit, Remuneration, Nomination and Risk Committees. The result of the proxy votes submitted by shareholders in respect of each resolution will be available on the company's website or on request to the Company Secretary. As outlined at principle 2, the company maintains an active dialogue with its shareholders through a planned programme of investor relations. 56 57
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