Annual Report and Accounts 2016

Chairman's letter to shareholders


In my first corporate governance report on behalf of the Board, I am pleased to confirm that it was evident to me on my appointment that the three essential pillars of a successful board were in evidence in the Pennon boardroom, namely having strong financial control, sound administration and good governance. I place great importance on all these facets but maintaining good governance is central to the successful management of every board and to the creation of shareholder value as set out in our business model on pages 10 and 11.

I am committed to ensuring that Pennon Group continues to operate to the highest standards of corporate governance and in my first few months as Chairman I have reviewed in consultation with the Nonexecutive Directors the Board governance structure. The result is a more streamlined structure as described in this report on page 62 whilst ensuring that the water business remains ring-fenced in accordance with Ofwat regulatory requirements.

Read our Chairman's letter to shareholders (PDF)