Finance Committee Charter
The Finance Committee of the Board of Trustees (the Board) of Eversource (the Company) provides assistance to the Board in fulfilling the Board's oversight responsibilities relating to the financial policies, plans and programs of the Company and its subsidiaries.
Membership and Meetings
Trustees serving on the Finance Committee shall have sufficient knowledge and familiarity in the areas of finance and risk management to discharge the duties and responsibilities of the Finance Committee.
The members of the Finance Committee shall be appointed annually by the Board on the recommendation of the Corporate Governance Committee. One of the members of the Finance Committee shall be designated by the Board to be the Chair.
The Finance Committee shall meet as often as it determines, but no less frequently than three times a year.
Committee Authority and Responsibilities
The Finance Committee shall have the authority to delegate its responsibilities to subcommittees (consisting of one or more of its members).
The Finance Committee shall make regular reports to the Board. The Finance Committee shall maintain minutes of its meetings and provide copies of the minutes to the Board. The Finance Committee shall review and reassess the adequacy of this Charter annually and recommend any proposed changes to the Corporate Governance Committee for recommendation to the Board for approval. The Finance Committee shall annually review its own performance and report its findings to the Corporate Governance Committee.
The Finance Committee, as necessary or appropriate, shall review the Company's:
- Actions and plans to help assure adequate liquidity.
- Dividend policy, and shall recommend to the Board the dividend on the Company's common shares.
- Financial goals and financing programs, including common share repurchase programs, early extinguishment and prefunding of debt and preferred stock obligations and other proposals to modify the Company's capital structure.
- Operating plans, financial budgets, forecasts and capital expenditures, including new business ventures and initiatives which may result in substantial expenditures, commitments and exposures.
- Reports of investment policies, funding and investment results of pension plans and related investments of the Company and its subsidiaries.
- Plans and recommendations regarding the extension of material direct credit or contingent financial guarantees to any related entity or third party.
- Enterprise Risk Management Program, including practices to monitor and mitigate risk exposures.
- Insurance coverages and trends.