G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
Proposed ISS acquisition
Our attempt to acquire ISS was undeniably one of the more significant
events for the company and the board during the year. It involved a lengthy
and detailed process and the board as a whole decided to proceed with the
bid only after careful consideration, and following consultation with a number
of our major shareholders, in the belief that it was in the best interests of the
company and its shareholders. Too late in the process, it became clear that a
significant proportion of our shareholders were either not willing or not able
to support the transaction and the funding it required. That we were unable
to obtain that feedback at an earlier stage is a matter of regret for me and
the rest of the board. The ability of boards to have detailed dialogue with
shareholders about such matters is something which requires further
consideration and we are keen to promote a debate on this issue.
Integrated facilities services
Our withdrawal from the proposed acquisition of ISS does not mean
however that we will simply forget about integrated facilities services. Where
there is demand for such services, and where we can make good returns
providing them, we will continue to look at ways to broaden our offering
to meet our customers’ needs.
Contracts
It is pleasing to be able to report that the group has won a number of
very significant contracts in recent months. Again, the details are dealt with
elsewhere in this report, but it is noticeable that some of our largest potential
customers, especially in developed markets, see the value in outsourcing
a range of solutions in which we have particular expertise. We believe this
trend is likely to continue given the need for such customers to obtain the
best value for money in what is likely to remain a testing economic climate.
The board
Last year I confirmed that it was the desire of the board to increase its
gender diversity. This was partly in response to Lord Davies’ report of course,
but it has been part of our criteria for director selection for some time.
Our intention is to ensure that the widest range of talents and experience
is represented on the board so that the company is best equipped to
meet all the challenges which it faces. There have been no changes to the
membership of the board during the year, but my own departure during
2012 will mean at least one change is on the horizon and the Nomination
Committee considers succession planning for all board roles on a regular
basis. The current directors already represent a wide range of backgrounds,
experiences, cultures and nationalities – and it is our intention that this should
continue, whilst ensuring that we always recruit the best people.
The future
2012 is an Olympic year of course, and there will be much focus on the
London 2012 Olympic and Paralympic Games, and on the services which the
group will provide as part of the efforts to ensure the Games are safe and
enjoyable for all involved. But there is more to the future than just this one,
albeit very large, event. The group will continue to grow and evolve – but
the heart of this development will always be serving the interests of our
customers and looking after our employees. In this way we will also continue
to act in the best interests of our shareholders.
Finally, I would like to thank my fellow board members, the employees of
G4S and the company’s shareholders for their invaluable support throughout
my involvement with the group.
Alf Duch-Pedersen
Chairman
G4S plc
Annual Report and Accounts 2011
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