Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Governance ReportThe Audit Committee has approved apolicy which governs the provision ofany non-audit services by the externalauditors. The policy sets out limits onthe services which may be providedby the external auditors so as not toimpair their objectivity or independencewhen reviewing the Trust’s financialstatements but does not restrict the Trustfrom purchasing other services fromthe external auditors where this is in thebest interests of the Trust. Any non-auditservices provided by the external auditorsare reported to the Audit Committeewhich is responsible for reviewing theobjectivity and independence of theexternal auditors.6.3 Remuneration ReportRemuneration CommitteesThe Trust operates two separatecommittees to make decisions orrecommendations relating to theremuneration of executive andnon-executive directors.The remuneration of executive directorsis considered by a committee consistingof all seven non-executive directors. TheRemuneration Committee determines thefinal salaries of the executive directorsand makes recommendations to theBoard of Directors on annual pay awardsand remuneration policies for all otherstaff. Details of the membership, numberof meetings and attendance at meetingsof the Remuneration Committee areshown in the table on the right.The remuneration of non-executivedirectors is considered by a committeecomprised of four governors who havebeen elected by their fellow governors.The Non-Executive Director RemunerationCommittee monitors the performanceof the non-executive directors andmakes recommendations to the Councilof Governors on the total level ofremuneration to be paid to non-executivedirectors. Details of the membership,number of meetings and attendance atmeetings of the Non-Executive DirectorRemuneration Committee are shown inthe table on page 111.The Non-Executive Director RemunerationCommittee is advised by the Directorof Human Resources on market ratesand relativities (based on researchcommissioned by the Trust and carriedout and reported upon by NHS partners).The Remuneration Committee is advisedby the Chief Executive on performanceaspects, by the Director of Finance onthe financial implications of remunerationor other proposals and by the Directorof Human Resources on personnel andremuneration policy. John Langranof John Langran Human ResourcesConsulting also prepared a report forthe Remuneration Committee on theremuneration of the Trust’s executivedirectors relative to the external marketfor similar posts taking into account thesize and nature of the Trust. The TrustSecretary attends meetings of bothcommittees to record the proceedings.Attendance at meetingsAgainst each name is shown the numberof meetings of the committees at whichthe non-executive director or governorwas present and in brackets the numberof meetings that the non-executivedirector or governor was eligible to attendas a member of the committee during2012/13.Meetings of the Executive DirectorRemuneration CommitteeNameMeetingsattendedJane Stichbury (Chair) 2 (2)David Bennett 2 (2)Pankaj Davé 2 (2)Brian Ford 2 (2)Steven Peacock 2 (2)Alex Pike 2 (2)Ken Tullett 1 (2)110Annual Report and Accounts 2012/13