Corporate governance

Corporate rules

The implementation of the best principles and practices of corporate governance is a top-level strategic element and an essential requirement to ensure good governance of the Company.

This English translation is exclusively for information purposes and is based on the original, official document in the Spanish language, available in the Spanish version on the company´s website.

 

Rules of governance applied by the Company

 

Company Chairman Succession Plan

The Board of Directors, at the meeting held on October 27, 2011, approved the Succession Plan for the Company’s Chairman, following an increasingly common corporate governance practice worldwide, consisting of preparation and approval by listed companies of succession plans for their Chief Executive (CEO), to minimise the impact of the handover on the organisation, aiming to determine an adequate model profile for the candidates and to ensure continuity in the corporate business, reducing insofar as possible the possible risks or negative effects of the appointment of a new chairman, until he or she is fully integrated into the post.

The Succession Plan for the Company’s Chairman was approved on the basis of the special conditions present in Red Eléctrica’s chief executive, post which is held by the Chairman of the Board of Directors. The Plan establishes a succession procedure split into several phases, attributing responsibilities to the managing bodies participating in it; all with a view to creating an environment in which the appointment of a new chairman may be carried out in an orderly and efficient manner that does not affect the Company’s normal activities/operations. This Plan was applied for the first time in 2012 in order to organize the handover of the position of the Company’s Executive Chairman from Luis Atienza Serna to José Folgado Blanco, which contributed to achieve an orderly succession.