2016_Halma_ARA_160610_2

Chairman’s introduction to Governance
Leading the governance
agenda
Our success is
underpinned by the
robust and meaningful
corporate governance
framework that we
have in place.
Paul Walker
Chairman
Good governance is essential for promoting
the success of the Company and it sits
at the heart of how we manage our Group.
Our success is underpinned by the robust
and meaningful corporate governance
framework that we have in place, supported
by our Group-wide culture of openness,
transparency, constructive challenge
and support.
The Board is committed to maintaining
the highest standards of corporate
governance and, on their behalf, I am
pleased to present Halma’s Corporate
Governance Report for 2016.
This report provides an explanation of
the framework within which the Group is
governed and sets out how we have applied
the main principles and relevant provisions of
the UK Corporate Governance Code 2014.
LEADERSHIP
Developing effective leadership throughout the
Group is essential for attracting and retaining
talent and aiding succession planning. The
additional focus that has been given to
improving the quality and performance of
Halma’s management talent over the past
two years has been invaluable. The Board’s
support of executive activity surrounding
talent has reinforced this strategic imperative
across the entire business.
Equally, at Board level, it is important to have
the right balance of skills and experience,
while enabling a refresh of non-executive
Directors over time. Over the past year, we
have had the opportunity to change the
composition and responsibilities within the
Board. Following Stephen Pettit’s retirement
from the Board after last year’s annual
general meeting, Tony Rice, non-executive
Director, became the Chairman of the
Remuneration Committee and Senior
Independent Director. Jane Aikman will
step down as a non-executive Director and
Chairman of the Audit Committee after our
Annual General Meeting in July, and Carole
Cran, who was appointed a non-executive
Director in January 2016, will assume the
role of Audit Committee Chairman.
I would like to thank Jane for her valuable
contribution to the Company over the last
nine years, in particular in her role as Audit
Committee Chairman and for her support
with Carole Cran’s induction. I am delighted
to have Carole as a member of our Board
and welcome her further contribution as
she prepares for and takes up the role of
Audit Committee Chairman.
I believe that we have the right balance of
skills, experience and knowledge on our
Board to deliver strong leadership, make
clear and effective decisions and harness
an open and transparent culture which
encourages an entrepreneurial approach
at a business level.
Biographies for each of the Directors are set
out on pages 56 and 57 and for those
Directors standing for election or re-election
at the Annual General Meeting, are also
contained within the Notice of Meeting.
EFFECTIVENESS
Building on the externally facilitated Board
evaluation that was concluded last year, I have
continued to work closely with my fellow
Directors to improve the effectiveness of the
Board. The competence and culture of open
challenge that lies within our Board enables
us to deliver effective decision-making within
a governance framework which is fit for the
future growth of the Company.
54 Halma plc Annual Report and Accounts 2016