Departmental Recruitment

Cabinet Office written question – answered on 29th February 2012.

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Photo of Rachel Reeves Rachel Reeves Shadow Chief Secretary to the Treasury

To ask the Minister for the Cabinet Office what progress he has made towards employing private sector non-executives to departmental boards; and what remuneration package is provided for each non-executive director drawn from the private sector serving on a departmental board.

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

holding answer 27 February 2012

Since May 2010 the Cabinet Office has driven forward efficiency programmes, which has identified £5 billion of savings for Departments in 2011-12. By appointing those with experience of managing complex organisations, including many world-class business heavyweights, to serve as Non-Executives on departmental boards the Government are introducing a more business-like ethos to Whitehall. The Non-Executives are challenging Departments to deliver the Government's objectives in a timely and cost-effective way. Our Non-Executives are offered remuneration in line with the guidance in “Corporate governance in central government departments: Code of good practice 2011”, which provides that:

“Non-Executive board members will be remunerated at a rate which is in line with the Bank of England's non-executive Directors of Court”.

In 2011-12 this was a rate of £15,000 per annum. An additional £5,000 is available to Lead Non-Executives and chairs of Audit and Risk Committees.

59 Non-Executives have now been appointed to the Enhanced Departmental Boards. Of these 17, including eight Lead Non-Executives, waive their fees. Further Non-Executives have indicated they have donated, or intend to donate, their fee to charity.

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