Investor relations

Governance

Good corporate governance is fundamental to the way that 3i, and its investee companies, conduct business. Particularly in the current volatile economic and political environment, effective oversight of strategy, risk management and people are vital to the delivery of long-term, sustainable value to the Group’s stakeholders. The Board must also remain responsive to the evolving regulatory environment and changing societal expectations of business.

Governance framework

The Board is responsible to shareholders for the overall management and oversight of the Group to ensure its long-term success. In particular, the Board is responsible for approving the Group’s strategy, setting the Group’s risk appetite, monitoring performance, and maintaining an effective system of risk management and internal controls. It is also responsible for the Group's approach to sustainability.

The Board is also responsible for ensuring that the Group has the necessary people, resources and structures to deliver the strategy

Board composition

At 31 March 2018, 3i’s total of 244 employees was broken down as follows.

Sector experience

  Tenure

  Gender diversity

 

Division of responsibilities

Role of the Chairman

  • Leads the Board in setting its agenda, approving strategy, monitoring financial and operational performance, and establishing the Group’s risk appetite.
  • Organises the business of the Board, ensuring its effectiveness, and maintains an effective system of internal controls.
  • Ensures that non-executive Directors receive relevant and accurate information to facilitate an open and effective discussion. This includes ensuring that the non-executive Directors receive regular reports on shareholders’ views on the Group.
  • Responsible for the composition of the Board and facilitates the effective contribution of non-executive Directors and constructive relationships between Executive and non-executive Directors.

Role of the Chief Executive

  • Direct charge of the Group on a day-to-day basis and is accountable to the Board for the financial and operational performance of the Group.
  • Chairs the Investment Committee to review the acquisition, management and disposal of investments.
  • Leads the Executive Management team to develop and implement the Group’s strategy and manage the risk and the internal control framework.
  • Reports to the Board on financial and operational performance, risk management and progress in delivering the strategic objectives.
  • Regularly engages with shareholders and other key stakeholders on the Group’s activities and progress.

Role of non-executive Directors

  • Scrutinise the performance of management in meeting agreed objectives and monitor the reporting of performance.
  • Seek assurance on the integrity of the financial information and that financial controls and systems of risk management are robust and defensible.
  • Determine appropriate levels of remuneration for Executive Directors and Executive Committee and have a prime role in appointing Directors and in succession planning.
  • Constructively challenge and help develop proposals on strategy; this occurs at meetings of the Board, and in particular at the annual review meeting to discuss ongoing strategy, the most recent of which took place in December 2017.
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