Strategic report Governance Financial statements Other information NOMINATION COMMITTEE REPORT CONTINUED In June 2020, the Committee considered and approved a change In reviewing the composition of the Board and its Committees, Training is offered via a range of mediums such as deep dives at of emphasis to an ‘evergreen’ approach to succession planning, the Committee also considers the tenure of the Non-Executive Board or Committee meetings, group or one-on-one sessions at with greater focus on proactively anticipating succession demands Directors. Potential gaps in skills, knowledge and experience the office or remotely, as well as more formal courses or training and to develop a pipeline of talent with the skills and capabilities when Directors rotate off are taken into account when developing sessions offered by third party providers. During the period under that align to the future strategic needs of the business. At its succession planningfor both the Board and its Committees. review the Board has received remote training from Silicon Valley December meeting, the Committee agreed that given the recent In the period under review, the Committee has considered in detail Product Group on modern product best practice. The Board also high level of turnover, the ‘evergreen’ approach to succession the skills and experience gap that arose from Shirley Garrood’s held workshops remotely on a range of subjects including: planning would not be appropriate in the short term and that a departure at the end of 2020. technology; client; service and growth. Board skills matrix would be used to consider individual and Contingency planning The output of annual Board evaluations and the skills matrix collective skills. TheCommittee intends to revert to an ‘evergreen’ In addition to considering longer-term succession planning, referred to above are also used to identify both individual and approach to succession planning in the course of the next financial the Committee has received and reviewed reports on short-term collective training and development needs. year. The Committee is also actively considering mechanisms for contingency planning to prepare for unexpected periods of stress staggering Board tenure to ensure a more even distribution of using existing talent. In doing so, the Committee has received its Diversity change amongst the Board. annual report on Non-Executive Director contingency planning, as The Board believes that building a diverse and inclusive workforce Skills matrix well as in-depth contingency planning for the Senior Management is important not just because it is the right thing to do, but because During the period under review, the Committee has reviewed the Functions acrossthe Group’s regulated subsidiaries that are it is good for the Group’s clients, its business and its people. detailed skills matrix to aid it in identifying the present and future subject to the SMCR regime, which includes plans for the Executive The Group’s objective is to build a diverse workforce at all levels needs of the Board. The Committee enhanced the recognition Directors on the Board. and create an inclusive culture for all. The Board is committed to given to skills acquired outside the corporate board environment creating a culture where people treat each other with dignity and and refined the analysis of ESG skills to ensure better alignment Board training are encouraged to realise their full potential. with the needs of the Group. The skills by which Board members The Board recognises that the breadth and depth of knowledge The Group’s inclusion and diversity policy supports this by making are assessed are alignedto theGroup’s current needs and and experience required for the boards of listed companies clear the Group’s aspirations and commitment to inclusion and strategic objectives. In addition to aiding the Committee in continues to expand, particularlyin regulated environments diversity, and by defining the roles and responsibilities that will succession planning and supporting recruitment, the matrix such as the financial services sector, and that owing to previous support it in attaining its objectives. The Group’s policy is based assists the Committee in its review of the size, structure and experience and tenure with the Company, each Director will have on five key principles: composition of the Board and its Committees, and in identifying differing training and development needs. collective and individual development needs. The Group’s approach to Director training and development is •Driving an inclusive culture. Inappropriate behaviour is not therefore to provide collective training events on topics of interest accepted, and training is provided to reduce bias across Board size, structure and composition for the Board as a whole, such as key regulatory changes, business the organisation; The Committee regularly reviews the size, structure and developments, cyber security andmarket updates. In addition, Embedding inclusion and diversity into the Group’s systems composition of the Board, aswell as conducting annual reviews • of the composition of its Committees. In addition to providing the there is now access to bespoke training events for individuals based and processes. This includes a focus on hiring more, promoting Board with assurance on its ability to satisfy the Group’s current on specific development needs, background or changing roles. more and losing less diverse talent, and making reasonable and future business needs, the reviews provide an opportunity For example, this could include detailed CASS training for Audit workplace adjustments to accommodate colleagues from to consider the additional skills and experience that might Committee members. diverse backgrounds and those with specific needs; complement those already on the Board. This, in turn, is used as a tool to develop the Group’s succession planning. 116 Hargreaves Lansdown Report and Financial Statements 2021