Corporate Governance Report  | continued How does the Board plan for succession and what  is its policy on diversity? What criteria are used to determine the  independence of non-executive Directors? What are the terms of appointment of non- executive Directors? Who is the Company Secretary? Who is the Senior Independent Director? When was the Chairman appointed and does he  have non-CRH commitments? What processes are in place for appraising the  performance of Directors and for evaluating the  effectiveness of the Board? The Board plans for its own succession with the  assistance of the  Nomination and Corporate  Governance Committee . For non-executive  appointments, independent consultants are  engaged to search for suitable candidates. The  process to identify, evaluate and appoint a  non-executive Director with the suitable  experience, skills and time commitment takes into  account both the needs of CRH and the tenure  and skills of existing board members. As a result,  non-executive renewal and refreshment is a  continuous process.  The non-executive Directors meet regularly with the  Chief Executive to discuss senior management  succession planning to ensure appropriate talent  management structures are in place to provide a  pool of potential candidates for key executive  Director appointments. External consultants are  engaged for executive Director recruitment if, and  when, required. We are committed to ensuring that the Board is  sufficiently diverse and appropriately balanced. In  its work in the area of Board renewal, the  Nomination and Corporate Governance Committee  looks at the following four criteria when considering  non-executive Director candidates:  During the ongoing process of Board renewal,  each, or a combination, of these factors can take  priority. Consequently, to date the Board has not  set specific objectives in relation to diversity. The independence of non-executive Board  members is considered annually. The Board is  assisted in this by the annual review carried out by  the Senior Independent Director which addresses  the independence of the individual members of the  Board (see  Performance appraisal and Board  evaluation  section on this page), and by the work  of the  Nomination and Corporate Governance  Committee , which annually reviews each Board  member’s directorships and considers any relevant  business relationships between Board members.  We have concluded that all of the non-executive  Directors bring independent judgement to bear on  issues of strategy, performance, resources, key  appointments and standards, and have determined  that each of the non-executive Directors is  independent. In reaching that conclusion, we  New Directors are provided with extensive briefing  materials on the Group and its operations, the  procedures relating to the Board and its  Committees and their duties and responsibilities as  Directors under legislation and regulations that  apply to the Company. The Chairman agrees a  How are the induction, training and development  needs of Directors catered for? Non-executive Directors are typically expected to  serve two three-year terms, although they may be  invited to serve for further periods. The standard  terms of the letter of appointment of non-executive  Directors are available for inspection at the  Company’s registered office and at the Annual  General Meeting. Neil Colgan was appointed Company Secretary in  June 2009. The appointment and removal of the  Company Secretary is a matter for the Board. All  Directors have access to the advice and services of  the Company Secretary, who is responsible to the  Board for ensuring that Board procedures are  complied with. Dan O’Connor was appointed as Senior  Independent Director in 2012. He is available to  shareholders who have concerns that cannot be  addressed through the Chairman, Chief Executive  or Finance Director. Although Nicky Hartery holds a number of other  directorships (see details on page 36), the Board  considers that these do not interfere with the  discharge of his duties to CRH. There has been no  change in his non-CRH commitments since his  appointment as Chairman. Nicky Hartery was appointed Chairman of the  Group following the conclusion of the 2012 Annual  General Meeting. On his appointment as Chairman,  he met the independence criteria set out in the UK  Code.  considered the principles relating to independence  contained in the UK Code, together with the  guidance provided by a number of shareholder  voting agencies, and have taken the view that  independence is determined by a Director’s  character, objectivity and integrity. Those principles  and guidance highlight a number of factors that  might appear to affect the independence of  Directors, including former service as an executive,  extended service on the Board and cross- directorships, while making it clear that a Director  may be considered independent notwithstanding  the presence of one or more of these factors. tailored and comprehensive induction programme  with each new Director. A typical induction programme, which generally  takes place over the first year of a Director’s  appointment, would cover the topics set out in the  Induction Programme panel on page 42. Sessions are held with the Chairman at which  progress is reviewed and feedback is sought. New  Directors also meet with the Group’s stockbrokers. For newly-appointed members of the  Audit  Committee , training arrangements would include  the topics set out in the Induction Programme  panel on page 42. New members of the  Remuneration Committee meet with the Committee’s remuneration  consultants in the year of their appointment to the  Committee. Directors can also avail of opportunities to hear the  views of and meet with the Group’s investors and  analysts. Directors regularly receive copies of  research and analysis conducted on CRH and the  building materials sector. The Board receives  regular updates from the external auditors in  relation to regulatory and accounting  developments. Updates in relation to other relevant  matters, for example, changes in company law, are  provided from time to time. An annual review of individual Directors’  performance is conducted by the Chairman and  each Director is provided with feedback gathered  from other members of the Board. Performance is  assessed against a number of measures, including  the ability of the Director to contribute to the  development of strategy, to understand the major  risks affecting the Group, to contribute to the  cohesion of the Board, to commit the time required  to fulfil the role and to listen to and respect the  views of other Directors and the management  team. As part of that review process the Chairman  discusses with each individual their training and  development needs and, where appropriate,  agrees suitable arrangements to be put in place to  address those needs. Each year, the Senior Independent Director  conducts an annual review of corporate  governance, the independence of Board members,  the operation and performance of the Board and  its Committees and the effectiveness of Board  communications. This is achieved through  discussion in one-to-one sessions with each  Director. The meetings, which cover specific topics  and allow for free-ranging discussion, provide a  forum for an open and frank discourse. The Senior  Independent Director circulates a written report to  the Board each year, which summarises the  outcome of the review and sets out any  CRH 41 – international business experience, particularly in  the regions in which the Group operates or in  which it intends to expand;  – skills, knowledge and expertise in areas relevant  to the operation of the Board;  – diversity, including nationality and gender;  – the need for an appropriately sized Board. 