Investor relations

Governance

Good corporate governance is fundamental to the way 3i, and its investee companies, conduct business. Effective oversight of strategy, people and risk management is vital to the delivery of sustainable value to the Group’s stakeholders.

Governance framework

The Board of Directors is responsible for ensuring that there is an effective organisational and reporting structure in place such that there are clear reporting lines within the Group and well defined roles and responsibilities. This is to ensure that the right decisions are being made with involvement from the right people.

Board composition

At 31 March 2017, 3i’s total of 241 employees was broken down as follows.

Composition

Gender diversity

Tenure

 

Division of responsibilities

Role of the Chairman

  • Leads the Board in setting its agenda, agreeing 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.
  • Leads the Executive Committee to develop and implement the Group’s strategy and manage risk and the internal control framework.
  • Chairs the Investment Committee to review the acquisition, management and disposal of investments. 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 2016.
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