Diversity & Inclusion

This Board Diversity and Inclusion Policy (Policy) sets out the approach to diversity and inclusion in the composition of the boards of Virgin Money UK PLC and Clydesdale Bank PLC (Board) and covers at a high level the approach to diversity at all levels within Virgin Money which is governed by Virgin Money’s Group Inclusion Policy. This Policy applies from 1 October 2022.

Policy Statement

As a Board, we are proud that inclusion is at the heart of Virgin Money’s culture driven by our Purpose ‘Making you happier about money’. We are continually striving to build a workforce that represents the communities we serve, helping us to better understand our stakeholders’ needs, make more rounded decisions, build stronger relationships, and tap into new ideas and innovation. As part of our inclusion strategy, we want to build a truly inclusive culture, where every colleague and customer feels they belong. This is why we’re focused on sponsoring diverse talent at every level and achieving a fully diverse leadership population (gender, ethnicity, disability, LGBTQ+) by 2030. Reflecting Virgin Money’s broader diversity ambition, the Board is committed to ensuring that its own membership reflects diversity in the broadest sense. Recruitment of Board members considers differences in knowledge, skills and experience and also in age, gender, ethnicity, disability, educational, professional and socio-economic background and other distinctions between Directors such as cognitive and personal strengths. These differences are considered in determining the optimum composition of the Board.

1. The Governance and Nomination Committee (Committee) regularly reviews and assesses Board composition on behalf of the Board and leads the Board member selection and appointment process, recommending to the Board the appointment of new Directors.
2. All Board appointments and succession plans are made based on merit against objective criteria, in the context of the skills, experience, independence and knowledge which the Board as a whole requires to be effective.
3. In reviewing Board composition and in identifying suitable candidates for appointment to the Board, the Committee will also carefully consider the benefits of diversity amongst Board members including age, gender, ethnicity, disability, educational, professional and socio-economic background and other distinctions between Directors such as cognitive and personal strengths.
4. The Committee will require that HR and / or any third-party search firm (as applicable) identifies and presents candidates meeting the objective criteria it sets in addition to the broader diversity and inclusion characteristics outlined above.
5. The Policy, its objectives and targets, will be reviewed at least annually by the Committee and presented to the Board for approval.
6. The Policy will align where relevant to Virgin Money’s Group Inclusion Policy applying to all colleagues and all other relevant policies and principles.
7. Progress on achieving the Policy targets and how the Policy objectives have been implemented will be reported in the Virgin Money UK PLC Annual Report and Accounts.

The Board aspires:

• to have a membership comprising at least 40% women Directors by the end of 2023;
• to have at least one of the senior Board positions (Chair, Senior Independent Director, Chief Executive Officer or Chief Financial Officer) held by a woman; and
• to have at least one member of the Board who is from a minority ethnic background¹.

Additionally, the Board aspires that the membership of each of its Audit, Governance and Nomination, Remuneration and Risk Committees comprises at least 40% women by the end of 2023 with one Committee member in each case being from a minority ethnic background.

In setting the above targets it is acknowledged that in periods of Board change there may be times when these targets are not met.