2011 Annual Report PDF - Tullow Oil plc

Chairman’s introduction continued
the median. The Remuneration Committee is cognisant of the
current sensitivity relating to executive director remuneration
but believes that a strong emphasis on long-term performancerelated
pay continues to be appropriate and helps ensure that
the Tullow’s remuneration policy does not encourage
inappropriate risk-taking. Full details are set out in the
Remuneration Committee report, which commences
on page 88 of this report.
Board time
Uganda took up a considerable amount of the Board’s time
again during 2011, as would be expected given the strategic
importance of this major project. Corporate responsibility –
governance, environment, health and safety, human resources
and stakeholder management – took up a third of the Board’s
time, which underlines the importance of our wider social and
environmental responsibilities. Strategy and risk management
are core elements of the Board’s activities and in 2012 we will
seek to increase the amount of time we spend preparing for the
future and discussing the major opportunities and challenges
that the Group faces. A full breakdown of Board time in 2011
is on page 77.
“Our goal in Tullow is to
follow the principle that
good behaviour is an
integral part of doing
your job and that full
compliance is expected,
whether you are staff,
a contractor or supplier.”
2011 BOARD OBJECTIVES
Corporate
strategy
Corporate risk
Ensure sufficient Board time is given to strategic debate, listening to
external views and the determination of new options to generate
long-term value.
Formally review corporate strategy at least annually.
Principal risks and uncertainties in relation to the Group’s financial and
operational performance in 2011 are set out in the risk management
report on page 40. In addition the Board has an objective to ensure that
major corporate risks continue to be identified and that adequate systems,
processes and procedures are in place to monitor and mitigate them.
Specific corporate risks currently identified are:
1. External stakeholder relationships;
2. Health and safety, with particular emphasis on malaria awareness and prevention;
3. UK Bribery Act and Tullow’s Code of Business Conduct;
4. Organisational capacity; and
5. Maintenance of Tullow culture.
Board
Committees
Implement succession plan for Chairman and non-executive Directors.
Review and revise remuneration structure to align with current
phase of growth.
Re-visit composition of Board Committees.
Further improve Board visibility both as a whole and as individual
Directors and examine the effectiveness of internal communications in
assessing the views of employees, both long-serving and new joiners.
Training of
Directors
The Chairman is to agree formal training and development plans with
each Director and review progress in completing these plans.
Graham Martin
General Counsel
and Company Secretary
Board
administration
A more thorough review of electronic/web-based Board administration
systems will be made in 2011 to enhance Board efficiency.
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Tullow Oil plc 2011 Annual Report and Accounts