Day 122 - 05 May 95 - Page 43
1 MR. MORRIS: Were you on the Board of Directors at any time?
2 A. No, I have never been on the Board of Directors.
3 I answer to the Board; I often do Board presentations;
4 but -----
5
6 Q. While we are on the subject of corporate structure UK
7 structure, there is the Board of Directors?
8 A. Yes.
9
10 Q. Then there the Executive, which you are part of ---
11 A. Yes.
12
13 Q. -- but not policy-making. What is immediately under that?
14 Is it departmental?
15 A. Well, some departments will be managed by a member of
16 the Executive but some departments are not. The Security
17 Department, Terry Karan, is not an Executive, he is a
18 department non-executive Department Head, and Mike Love,
19 whom you have seen in court, in charge of communications is
20 a non-executive Department Head.
21
22 Q. But each department itself has some kind of management
23 meeting?
24 A. Each department will be responsible to a member of the
25 Executive. Some member of the Executive will have a
26 responsibility for all, you know, for a department.
27
28 Q. But does that Executive member make the policy decisions
29 him or herself, or do they have some kind of management
30 groups that meets for each department?
31 A. No, he can do, but normally he would introduce it at an
32 executive meeting and say: "I am thinking about changing
33 this policy or that policy", and invite comment from his
34 fellow executives, but the executives tend to be particular
35 to a discipline; there is construction; there is
36 real-estate or property; there is purchasing; there is
37 marketing; there is field -- there is human resources --
38 you have to forgive me I never called it human resource --
39 there is human resources; and I am the newcomer to the
40 list.
41
42 Q. So the policies from any particular department, or relevant
43 to any particular department, such as personnel, that would
44 have to go through the Executive, would it, or is it
45 something -- does it have to be decided -----
46
47 MR. JUSTICE BELL: It is presumably just a matter of how
48 important it is thought to be?
49 A. Indeed, and the Vice-President responsible would have
50 to make that decision. In other words if Carmel Flatley
51 wanted to introduce a new policy, and it was of minor or
52 relatively minor importance, she could do that on her own.
53 But if it was something that was going to affect other
54 departments -- in other words it was not internal to her
55 department, it was going to affect the Operations side --
56 then it would be right that she introduced it, long before
57 she introduced the policy, to the Executive, and they would
58 give comment. The Operations people, I think, would be
59 most upset if she changed personnel matters relating to the
60 restaurants without reference to them.
