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recommendations from Board members in relation to areas where improvements can be made. Consideration of the Senior Independent Director’s report is a formal agenda item at a scheduled Board meeting each year. 

Led by the Senior Independent Director, the non-executive Directors meet at least annually in the absence of the Chairman to review his performance. 

During 2012, the Board evaluation process was facilitated by a UK-based service provider, ICSA Board Evaluation (‘ICSA’), which has an extensive record in facilitating Board evaluations in large listed companies both in Ireland and the UK. While ICSA is part of an organisation which also supplies software solutions to the Group, the Nomination and Corporate Governance Committee , which oversaw the external evaluation selection process, was satisfied that the annual value of the relevant contracts was not material to either CRH or ICSA. 

## What was the outcome of the external Board evaluation carried out in 2012? 

The overall outcome of the assessment was very positive, with the Board’s performance being rated as “very good” on a six point scale, ranging from poor to excellent, as illustrated below. 

ICSA presented the outcome of the evaluation process to the Board and made eight recommendations to further improve the effectiveness of the Board. The recommendations related to the following: 

– enhancing the existing processes in place regarding strategy reviews, outcome tracking, Board renewal and Director development; 

– providing for an increased number of non-executive Director meetings without executives present; 

– taking fuller advantage of the opportunities afforded by Board visits for employee engagement; 

– rationalising Board documentation and updating Board protocols to take account of advances in technology and communications. 

A timetable for the implementation of the recommendations has been agreed by the Board. 

## What are the requirements regarding Directors’ retirement and re-election? 

All Directors retire at each Annual General Meeting and, unless they are stepping down from the Board, submit themselves to shareholders for re-election. Re-appointment is not automatic. Directors who are seeking re-election are subject to a satisfactory performance appraisal. All Directors are subject to the Memorandum and Articles of Association of the Company (a summary of provisions in the Memorandum and Articles of Association relating to the Directors is set out on page 53). 

## Induction Programme 

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