ARAG recognises the benefits of a diverse and inclusive board. Whilst all board appointments should be, and are, made on merit, ARAG will give weight to diversity in its monitoring criteria for board effectiveness.
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Access to a broader range of markets and business models
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Innovative solutions to problems
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Increased “richness” and diversity in thinking and decision making
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Improved business performance.
The Group Director of HR and Legal Services co-ordinates the monitoring of board diversity, inclusion and effectiveness on an annual basis. In undertaking these tasks, consideration will be given to the balance of skills, experience, independence and knowledge of board members and the diversity of the board; and recommendations will be made to the Group Nomination Committee on the appointment of Directors accordingly.
The Group Nomination Committee will incorporate these recommendations into its deliberations and will explicitly justify decisions that are inconsistent with such recommendations. The Group Nomination Committee will also ensure remuneration parity in its appointments. The Chairman of the Board will also explicitly justify any board’s decision not to approve Group Nomination Committee recommendations.
ARAG is committed to avoiding “tokenism” in this approach. Board member appointments will remain on merit, and with the concept of healthy board diversity and inclusion being encouraged and actively managed.
Approved by the Board of ARAG UK
March 2024