Annual Report 2007 - Antofagasta plc

Statement of Compliance withthe Detailed Provisions of theCombined CodeAs explained above, the Company complied with thedetailed code provisions contained in the CombinedCode throughout 2007 and to the date of this reportexcept as follows:• the Board does not have a separately identifiedChief Executive and there is no formal separationof the functions of Chairman and Chief Executive atBoard level (provision A.2.1). As explained above, theGroup has separate chief executives for its mining,transport and water distribution divisions who reportto their respective divisional boards and theChairman of the Group. The Board considers that itspredominantly non-executive composition combinedwith the delegation of management responsibility tothe chief executive officer of each division achievesan appropriate balance and prevents a concentrationof power by its Executive Chairman; and• performance related pay measures did not applyto Board members (provision B.1.1). The Boardconsiders this appropriate given its predominantlyNon-Executive composition and the role of theonly Executive Director, who is a member of thecontrolling family, as Chairman of the Board.Performance related bonuses are paid to seniormanagement in the Group based on a combination ofpersonal, divisional and Group performance assessedagainst targets set at the start of each year.CORPORATE GOVERNANCEAntofagasta plc Annual Report and Financial Statements 2007 71