Performance Appraisal of the Supervisory Board and its Committees

Starting from 2014, in accordance with best corporate governance practices, in particular with the Corporate Governance Code recommendations, the Supervisory Board annually appraises its own and its committees’ performance. On two occasions, it did so engaging an external organisation (in respect of 2015 and 2018). In 2020, the appraisal for 2019 was made by way of self-appraisal.

The self-appraisal was made under the Regulation on Appraisal of the Supervisory Board. Its aim was to identify the strengths of the Supervisory Board and its committees, areas of concern for the Supervisory Board and the Management Board, and areas for improvement.

The self-appraisal was made using questionnaires listing more than 40 items. Responses were assessed on a five-point scale, with the opportunity to provide additional comments.

The appraisal covered:

  • the Supervisory Board;
  • the Supervisory Board committees;
  • the Chairman of the Supervisory Board;
  • the Supervisory Board members;
  • the Corporate Secretary.

The self-appraisal identified the following strengths of the Supervisory Board and its committees: independence of Board members’ judgments, constructive relations between them and the management, based on mutual trust and respect, Board members’ preparedness for meetings, timely planning of Board meetings for the year, the Chairman’s leading role, effective support provided to directors by the Corporate Secretary, thorough analysis of the Management Board’s progress towards approved indicators, well-established process of selecting new candidates to the Supervisory Board, accurate minuting of the Board meetings, monitoring fulfilment of the Board’s requests, independent directors’ oversight of fine-tuned risk management processes, and the Board committees’ active role in making recommendations and proposals for the Supervisory Board.

Results of Performance Appraisal of the Supervisory Board and its Committees

The self-appraisal also helped identify areas for the Supervisory Board to focus on during 2020.