Standard Chartered has made several changes to its board strengthen the governance of the company. The board has appointed three new independent non-executive directors, a senior independent director and a new group executive director and announces that Gareth Bullock, group executive director, will retire from the board before the next AGM.
In order to improve corporate governance at the company, it also made changes to the board committee structures as well as changes to the portfolios of the existing team of group executive directors.
Han Seung-Soo, former prime minister of the Republic of South Korea, appointed as an independent non-executive director from 1 January 2010.
Richard Delbridge appointed as an independent non-executive director from 1 January 2010. He will become a member of the board audit and risk committees. Mr Delbridge has financial experience from a long banking career including group finance director at HSBC Holdings.
Simon Lowth appointed as an independent non-executive director from 1 May 2010. He is currently an executive director and chief financial officer of AstraZeneca. Rudy Markham’s has been appointed as as senior independent director (SID).
Jaspal Bindra, CEO of Asia is appointed as group executive director from 1 January 2010, keeping his responsibilities for growth and governance in Asia.
Moreover, during the first half of 2010, the board will separate the existing audit and risk committees. The risk committee will have responsibility for overseeing the management of the company’s fundamental prudential risks as well as reviewing the effectiveness of the company’s risk management framework. It will be chaired by Jamie Dundas, an independent non-executive director. In line with the Walker Review, Richard Goulding, chief risk officer, will report into both Richard Meddings and the risk committee.
The audit committee will continue to monitor the integrity of the company’s financial reporting, compliance and internal control environment and will be chaired by Rudy Markham.
The board is enhancing the remit of the existing sustainability and responsibility committee to include oversight and review of the company’s brand positioning, reputational risk, culture and values, as well as broader sustainability, ethical and social legitimacy issues. In addition, the remit will cover oversight of customer and client relationships including treating customers fairly. This committee will be chaired by Paul Skinner, an independent non-executive director.
John Peace, chairman of Standard Chartered, said: “We are adding significant financial and banking experience to the board as well as increasing its diversity to include members with special insight from our key Asian markets. We have an independent, challenging and engaged board that has steered the company well through the demanding environment in which we operate.”
Peter Sands, group chief executive of Standard Chartered, said: “These changes to the board and senior management reflect the changing size and scale of our business. The restructuring of the board committees underlines our commitment to building a sustainable business and the importance we attach to good corporate governance.”
