Corporate Governance Statement
Good corporate governance is essential to achieving our strategic ambition to be a leading provider of Banking Services, SME Lending and Retail Banking.
Aspiring to a higher standard of governance than that required of private limited companies, LHV Bank aims to comply as far as reasonably possible, given our ownership structure, size and maturity, with the Financial Reporting Council’s (FRC’s) 2024 UK Corporate Governance Code (the 'Code').¹
The Articles of Association of LHV Bank Limited can be found by clicking on the link below:
The Board
The Board of Directors is the key governance body responsible for overall strategy, business performance and risk management of the Bank.
Division of Responsibilities between the Chair, CEO and Senior Independent Director
There is a clear division of responsibilities between the running of the Board and the executive responsibility for the day-to-day running of the business of the Group.
The Chair leads the Board and is responsible for its overall effectiveness thereby promoting the high standard of corporate governance to which the Company subscribes.
The CEO leads the day-to-day executive management of the business and provides regular reporting to the board.
The Senior Independent Director supports the Chair, facilitates board effectiveness, and acts as an independent point of contact for directors and stakeholders when needed.
Board of Directors Terms of Reference and Schedule of Matters Reserved for the Board
Meet our Board Members
The Board consists of the Chair, two Executive Directors and four Non-Executive Directors whom the Board considers to be independent.
Board Committees
The Board has established the following committees to provide support in discharging its responsibilities.
Board Risk Committee
The Board Risk Committee reviews and monitors the Bank’s principal and emerging risks and reviews the effectiveness of the Bank’s risk management systems.
Board Audit Committee
The Audit Committee oversees the management of financial reporting to ensure the Bank’s reporting is fair, balanced and understandable. The Committee also monitors the robustness of the Bank’s internal financial controls and the efficacy of the internal audit function.
Board Remuneration Committee
The Remuneration Committee determines remuneration policy for executive directors and reviews wider employee remuneration policies and practices, setting targets and reviewing outcomes of those targets.
Board Nomination Committee
The Nominations Committee leads the process for new Board appointments, oversees succession planning and the development of a diverse pipeline of talent.
1 The Code applies only to premium listed companies, which are required by UK Listing Rules to report on a ‘comply or explain’ basis against the Code’s 41 provisions.