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.

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