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.