PERFORMANCE EVALUATION OF THE BOARD OF DIRECTORS

Introduction

Section 4.5.1. of the Code of Corporate Governance for Licensed Pension Operators provides that “the Board of Directors shall, on an annual basis, undertake a formal and rigorous evaluation of its own performance and that of its committees and individual directors”. The following questionnaires are aimed to achieve this objective, by eliciting responses from each individual Director on his/her view regarding how the Company has been managed in the last one year.

Key areas covered by the questionnaire include:
Part I – The Board of Directors 
Part II – The Executive Function covering Managing Director/CEO, ED Technical and ED Operations) 
Part III – Independent Non-Executive Director 
Part IV – The Board Committees 
Part V – The Chairman of the Board, and  
Part VI – Self-assessment by each Director  
Part VII – Non-Executive Director 

To be a meaningful exercise, the outcome of this exercise must result in an actionable plan. The process of implementing the outcomes then naturally becomes a crucial step in the entire evaluation process and should deserve the full attention of the Board and in turn of the management. Accordingly, the result of this evaluation shall be shared with all members of the Board. The Chairman of the Board shall act on the result of the performance evaluation by recognizing the strengths and addressing the weaknesses of the Board. Thus, members are encouraged to be objective and frank in their assessment.

The ratings of the questions are on a 5-point Likert scale and they are designed to assess how effectively the Directors, Committees and Board have met each criterion being considered. The scores range from 1 to 5 for all questions as
explained below:

1.     Outstanding
2.     Exceeds Expectations
3.     Meets Expectations
4.     Needs Improvements
5.     Poor

Seeing that we are carrying out this task internally, we have tailored it to the requirements of our Company. However, details of the process have been exposed to PenCom, and necessary approvals have been obtained.

The time and effort put into the filing of these questionnaires is highly appreciated.

Thank you.

Okey Nwuke
Chairman, Board Nomination-Remuneration Committee