Board and directors
The performance of the Board as a whole and each of its committees are reviewed against the requirements of their respective charters. In addition, the individual performances of the Board Chair and the directors are also reviewed. The People & Performance Committee determines the evaluation process for the Board and individual directors.
The performance evaluation of the Board as a whole and individual directors is conducted annually, the most recent being in November 2010 (with a further planned for May 2011). The review process was externally facilitated and comprised:
- An online evaluation survey of the Board’s effectiveness as a whole and of it members individually completed by each member of the Board
- An online self-evaluation survey completed by individual directors
- An online evaluation survey of the Board’s effectiveness as a whole and of it members individually completed by members of the senior management team who are invited to all meetings of the Board and its committees
- A confidential report detailing the results for the Board as a whole and of its individual members provided to the Board Chair, as well as a briefing regarding the collective and individual results provided by the external facilitator
- A confidential report provided to each director detailing the results for the Board as a whole and for that specific director, as well as an invitation to discuss the results with either the Board Chair or the external facilitator.
Performance of the Board and individual directors was assessed against a range of qualitative and quantitative criteria, covering the following focus areas:
- Sound business/commercial judgement and capability across all areas of Board matters including strategy and risk matters
- Understanding of external environments in which Western Power operates
- Interpersonal styles complementing Board’s composition
- Relationship between Board & management
- Fiduciary responsibilities
- Application of relevant skills, knowledge & experience & weight of contributions
The Board proposes to conduct this collective and individual performance evaluation twice per year.
The Board reviews the performance of its committees on an annual basis. The review comprises a written report from the respective committee detailing its:
- assessment of its performance against the requirements of its charter;
- goals and objectives for the coming year; and
- recommendations for any improvements to its charter deemed necessary or desirable
The Board also informally reviews its performance on an ongoing basis, by way of a meeting critique conducted by a member of the Board at the close of each Board and Board committee meeting.
Chief Executive Officer & other senior executives
The People & Performance Committee reviews, and makes recommendations to the Board on, the process for reviewing the performance of the CEO and senior executives. The CEO’s performance is judged against the approved strategic plan and the corporate and personal key performance indicators established for the CEO on an annual basis.
The CEO assesses the performance of senior executives by reference to corporate, divisional and personal key performance indicators established for the respective senior executives and approved by the People & Performance Committee on an annual basis.