Corporate  Governance 38 2  AGL will continue to implement initiatives  to increase the number of women in  leadership positions. By March 2012,  AGL will develop succession plans to  increase female representation in key  leadership positions. AGL is enhancing its talent management  processes to facilitate an increased  representation of women in leadership.  Additional metrics have been developed  to assess the proportion of women  identified as successors for critical roles.  These metrics have been applied to the  talent review process to identify where  women’s representation in the leadership  pipeline can be improved. 3  AGL will ensure equity in remuneration  principles. By September 2011, AGL will  embed pay equity analytics into AGL’s  Remuneration Review System and  update remuneration training for leaders  to include pay equity principles. In March 2011, lenders received training  on AGL’s remuneration principles and  practices, including gender pay equity  concepts. The training is being adapted  to an online format and will be launched  later in 2011. AGL’s remuneration review system now  provides simple on-screen calculations  and tailored reporting to assist leaders  assess whether they have any  unexpected (potentially gender-biased)  results at the time remuneration is  being set. 4  AGL will support employees seeking  flexible work arrangements as well as the  specific needs of our employees who are  carers. By December 2011, AGL’s  Parental Leave Policy will be updated to  be amongst best practice organisations. A new Parental Leave Policy has been  approved by the Executive Team. The  new policy provides 14 weeks paid leave  for women or men who are the primary  carers of a newborn or newly adopted  child and 2 weeks paid leave for partners  at the time of birth or adoption.  Employees also have the flexibility to  structure their paid leave flexibly, in  multiple blocks or on a part-time basis,  to match their individual caring situation.  The policy is expected to be launched  during FY2012. The composition of the Committee has  changed during the financial year. Belinda  Hutchinson joined the Committee in  December to replace Jerry Maycock who  stepped down as a member following his  appointment to the role of AGL Chairman.  The Committee currently comprises four  members – John Stanhope (Chair), Bruce  Phillips, Les Hosking, and Belinda  Hutchinson. John Stanhope has financial  expertise as a qualified accountant. Bruce  Phillips and Les Hosking each have long  careers in the energy industry. Belinda  Hutchinson also has prior energy industry  experience as a former Director of Energy  Australia and Snowy Hydro Trading. She  also has extensive experience in finance  and risk management. Further details of  the qualifications and experience of all  Under its Charter, the Audit and Risk  Management Committee must have at  least three members, all of whom must be  independent non–executive Directors. The  Charter also requires that all members have  a working familiarity with basic accounting  and finance practices and that at least one  member have financial expertise. The  Committee must also include members  with an understanding of the industry in  which AGL operates. The Board has established an Audit and Risk  Management Committee. Its primary  function is to assist the Board in fulfilling its  responsibilities to provide shareholders  with timely and reliable financial reports  and to protect the interests of  shareholders, customers, employees and  the broader community through the  effective identification, assessment,  monitoring and management of risks. Recommendation 3.4 –  Companies should  disclose the proportion of women  employees in the company, in Senior  Executive positions, and on the Board Committee members are disclosed on  pages 42 and 43 of this Annual Report. The CEO, CFO, Company Secretary (who  also has responsibility for AGL’s Group Risk  and Compliance function), Head of Group  Audit and the external auditor attend  Committee meetings at the discretion of  the Committee. Other non–executive  Directors may attend meetings. Although  he ceased to be a member of the  Committee after becoming AGL Chairman,  Mr Maycock has attended all meetings held  during the year. The Committee meets privately with the  external auditor on general matters  concerning the external audit and other  related matters, including the half–year and  full–year financial reports. The Committee  also meets privately with the Head of  Group Audit. The Company Secretary is the secretary to  the Committee. Copies of the minutes of a  meeting of the Committee are distributed  to the Board for discussion at the next full  Board meeting. The Chairman of the  Committee reports to the Board on the  Committee’s conclusions and  recommendations. The Committee collectively, and its  members individually, have access to  internal and external resources, including  access to advice from external consultants  or specialists. The Committee met five times during the  year. Directors’ attendances are set out on  page 44 of this Annual Report. The Committee operates under a formal  Charter published on AGL’s website. The  Charter is required to be reviewed by the  Committee and updated at least every two  years. The Charter was most recently  reviewed and updated in June 2010. The Charter sets out the roles and  responsibilities, composition, structure and  membership requirements of the  Committee. Recommendation 4.3 –  The audit  committee should have a formal charter Recommendation 4.2 –  The audit  committee should be  appropriately structured Recommendation 4.1 –  The Board should  establish an audit committee Principle 4: Safeguard integrity in  fi nancial reporting Progress to date Progress to date Progress to date Female Directors on the Board 25% Female employees in the Company 45% Female employees on the  Executive Team  11% Female employees in  leadership positions 33%