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Investor Presentaiton

54 A.P. Moller-Maersk Annual Report 2020 Directors' Report Governance Corporate governance • • Matters handled by the Board of Directors during 2020 (including but not limited to): • . . • Strategy and business plan review, target setting and budget approval Follow-up on M&A activities to ensure growth of Logistics & Services Review the implementation of a new safety framework within the organisation Monitor the company's financial policy, credit rating, debt levels and capital structure, including decision on dividend policy and share buy-back programme Monitor the implementation of the Tech strategy and cyber security standards Monitor the transformation and reorganisation of the company to become the 'Global integrator of container logistics' Conduct Board evaluation Nominate Blythe S. J. Masters as Board member for the election to the Board at the Annual General Meeting 2020 Approval of the Annual Report 2019 and the 2020 Interim Reports as well as review of monthly and quarterly financial reporting and forecasting Approval of a Remuneration Policy for the Board of Directors and Executive Board. Matters handled by the Board Committees in 2020 (including but not limited to): The Chairmanship Preparations and planning in relation to Board meetings • Coordination and sparring with the Executive Board. The Audit Committee • Monitor the financial reporting process, including accounting estimates and judge- ments, accounting policies and reporting process integrity Review annual and interim financial reports Review of the company's Directors and Officers Insurance Monitor the effectiveness of internal control systems, fraud risks and fraud prevention Discuss key audit matters, monitor the services, audit plans, reports, independ- ence of external auditors, and recommend statutory auditor for election ⚫ Monitor the Group Internal Audit function, its independence, scope and performance, resources and reporting, and the resolution of audit findings Oversee the company's Enterprise Risk Management framework and processes as well as review key enterprise risks and related mitigation plans Meet with the Head of Group Internal Audit, CFO, Head of Group Finance, Head of External Accounting and Tax, other func- tional leaders and external auditors. The Nomination Committee • Review and assess the composition, succes- sion planning, competencies, and diversity of the Board of Directors as a part of the Board evaluation Identify candidates (Blythe S. J. Masters) for membership of the Board of Directors Assess independence criteria of the Board members. The Remuneration Committee • . . ⋅ Review and define benchmarks for executive remuneration Review, monitor and propose to the Board the scorecards and remuneration packages of the Executive Board for 2020 and 2021 Review and propose a new Remuneration Policy Prepare the Remuneration Report Propose fees for the members of the Board of Directors. The Transformation & Innovation Committee Support the development of the trans- formation and technology agenda by over- seeing progress and prioritisation of pro- jects and processes of strategic importance Act as a sparring partner for the Executive Board within innovation, consolidation and growth, including M&A projects • . Assist in setting the standard and ambition level for the IT strategy and cyber security as well as follow-up on progress. =1
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