Alumina Limited

Board performance evaluation

Alumina Limited directors recognise the merit of annually evaluating both the collective performance of the board and that of individual members. A process of performance evaluation of the board and individual directors was implemented in 2003. This included individual performance reviews for directors.

Board members are required to complete a detailed questionnaire regarding individual knowledge, satisfaction, reporting and performance on a diverse range of pertinent business and governance topics that are responsibilities of the board. Though on this occasion an external facilitator was not used, the intention is that a facilitator will be utilised from time to time to obtain additional objectivity in the process.

Each director is required to objectively rank performance, according to a defined scale, for each responsibility/activity. In addition directors are encouraged to provide supporting or explanatory comments regarding their assessment and to nominate any matters or activities not expressly covered that they considered warranted attention.

The results of the questionnaires are collated and statistically analysed to rank collective board performance against each topic. Comparative analysis between individual director performance and the overall board performance is completed.

The board reviews and discusses the outcomes of the performance review and a range of initiatives to address significant issues to be improved that receives endorsement by the Board.

Directors also discuss specific issues where the assessment by Directors, had been significantly different to the collective mean assessment.

Board performance will be assessed on an annual basis.

In late 2014, the Board commissioned an independant consultant to review performance of the Board and its Committees. The consultant formally and separately reviewed each director before preparing and presenting a report in March 2015. The Chairman discussed with directors of the Board and its Committees in regards to relevant business, management and governance matters. Initiatives to improve performance were discusssed and approved.