John Dodds Large1

John Dodds
Chairman of the nominations committee

"The committee ensures the continued effectiveness of the board through appropriate succession planning."

Members

John Dodds (chairman)
Tony Osbaldiston
Kevin Whiteman
Alun Griffiths
Chris Holt

The committee met on two occasions during the year.

Role

The primary function of the committee is to deal with key appointments to the board, and related employment matters. The responsibility of the committee principally falls into the following areas:

  • To review the structure, size and composition of the board.
  • To make recommendations to the board for any changes considered necessary.
  • To approve the description of the role and capabilities required for a particular appointment.
  • To ensure suitable candidates are identified, having due regard for the benefits of diversity on the board, including gender, and are recommended for appointment to the board.

The committee's terms of reference are available on the Group's website (www.severfield.com) and on request from the Company secretary.

Board effectiveness

The committee has had another relatively quiet year. There have been no new board appointments as the board is currently at full strength, and considered to be operating effectively. The board now consists of nine directors, four of whom have been directors of the Company for less than four years.

Diversity

We have a formally adopted equal opportunities and diversity policy to encourage diversity at all levels within the Group. This policy sets out certain actions that will be taken to contribute to a more diverse workforce throughout the Group and demonstrates our commitment, wherever practicable, to achieving and maintaining a workforce that broadly reflects the communities in which we operate.

We support the findings of the Hampton Alexander Review, which builds on the Davies Review, to increase the number of women on FTSE boards, and to improve women's representation in leadership positions. The Group, however, does not believe in the concept of gender quotas, our preferred approach being much more directed at the selection of the right talent, experience and skill.

In the sectors in which the Group operates female representation at a board level is unusual and as at 31 March 2017, the board had no female directors. Notwithstanding this, the recruitment of Philippa Recchia as Group SHE director in 2016 has increased the female representation on our executive committee to two (14 per cent). The board recognises that gender diversity below board level continues to remain an issue, particularly in management and technical roles within the construction industry.

Succession planning

The committee ensures the continued effectiveness of the board through appropriate succession planning. More work has been done this year to formalise the process of ongoing succession planning across the Group and this was the specific topic of one of our meetings this year.

Evaluation

The committee (led by Kevin Whiteman) performed an internal evaluation using the process which is described here. The results of the evaluation were positive, following the significant changes made to the board three years ago. The key points arising from the evaluation were documented and discussed with the chairman.

John Dodds
Chairman of the nominations committee
14 June 2017