36 LV= Annual Report 2012
Matters reserved for the board Under the Society’s Rules all directors are required to stand
There is a clear list of matters which only the board for re-election at least once every three years, and therefore
can decide on; other matters are delegated to the group chief Mark Austen and Mike Rogers will be offering themselves for
executive. Matters reserved to the Society’s board include: re-election at the 2013 Annual General Meeting along with
A) Strategy and planning: our new appointee James Dean. We are actively recruiting an
l determining and overseeing delivery of the group’s strategy additional non-executive director who it is anticipated will join
l approval and monitoring of long-term strategic plans/objectives the board during 2013 and will offer themselves for re-election
l approval and monitoring of the group annual business plan. at the 2014 AGM.
B) Risk: Member relations
l allocating capital based on risk and return criteria The board believes that communicating with members is of prime
l determining the risk appetite of the business and overseeing importance. An important mechanism for this is the LV= Member
its usage. Panel, currently comprised of 30 members. This group meets with
C) Financial matters. Approval of: our chairman, his executive team and other senior managers to
l capital and revenue expenditure exceeding £5 million within learn about our recent performance, strategy, and future plans
agreed budget and £2.5 million outside agreed budget and any and to provide input and challenge. The board will continue to
other expenditure outside the normal course of business monitor the effectiveness of this interaction and make further
l the Annual Bonus Declaration changes as appropriate.
l the Individual Capital Assessment and its submission
to the FSA We also operate the LV= Community which allows us to send
l the Valuation Report and the Annual Report and Accounts regular emails to over 11,000 users with the latest LV= news,
l Member Bonus. offers and the opportunity to take part in research. Participants
D) Mergers, acquisitions and disposals: give us valuable input and comments on new developments,
l approval of mergers, acquisitions and disposals and such as product design or customer service processes.
overseeing effective integration.
The Member Care Line is a free and exclusive benefit that
E) Governance and compliance. Approval of:
handled over 1,100 phone calls in 2012 where members
l the Notice of AGM (including reappointment of auditors),
were seeking medical or legal advice. We also run a Member
any proposed amendments to the Memorandum & Rules
Support Fund which provides one-off financial grants to members
and related documentation in connection with the AGM
who find themselves, through no fault of their own, in severe
l any charitable or political donations
financial difficulties. Requests for help are assessed by a small
l the membership of board committees
independent committee of members. Grants that were awarded
l the terms of reference of board committees and subsidiary
during the year amounted to almost £33,000. Our members are
company boards
also entitled to discounts on a range of products.
l the appointment of company nominees to the Staff Pension
Scheme trustee company board
l policy changes in pension entitlement and SPS funding.
F) Appointment and removal of officers:
l appointment and removal of the Society’s chairman, deputy
chairman (if appointed), senior independent director, company
secretary, group chief executive, chief investment officer, chief
risk officer, with-profits actuary and actuarial function holder
and directors of the Society and its subsidiaries.
In 2012 the board met eight times for formal board meetings,
twice on an ad hoc basis to discuss specific issues and once for
an ad hoc strategy session. In 2013 the board expects to meet at
least eight times and to have two strategy sessions.
There was one new appointment to the board in 2012. James Dean
joined the board as a non- executive director in July.