Skip to content

27 September, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • board control

      Are boards losing control?

      We need to ensure that regulations do not inappropriately reduce a board’s ability to take...

    • audit reform Labour commits to audit reform legislation

      Shadow minister for business, Jonathan Reynolds, says Labour will push through audit reform when in...

    • News round-up: this week in governance

      Lonely leadership; how governance helps in a crisis; Kerrie Waring to depart ICGN; ESG and...

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • sustainability into finance

      How to integrate sustainability into financial decision-making

      Proactive leadership and board commitment are essential to transform notions of sustainability into fiscally viable...

    • reporting requirements

      Don’t let reporting requirements lead to boilerplate disclosures

      We must balance the need for disclosure of non-financial information so that it is sufficient,...

    • policy on human rights

      Why you need a policy on human rights

      As well as being the right thing to do, this element of a sustainable business...

  • Comment
      • View all
    • board control

      Are boards losing control?

      We need to ensure that regulations do not inappropriately reduce a board’s ability to take...

    • reporting requirements Don’t let reporting requirements lead to boilerplate disclosures

      We must balance the need for disclosure of non-financial information so that it is sufficient,...

    • CEO talent Can high CEO turnover boost gender equality?

      The trend for boards favouring internal pipelines for CEO succession creates an opportunity to nurture...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • helle bank jorgensen Helle Bank Jørgensen on governance, ESG and how board directors can become stewards of the future

      In spite of ESG toxicity in the US, she remains optimistic that companies are working...

    • information resilience IT transformation sees boards moving to ‘continuous’ management

      Data analytics available on demand requires a resilient—and selective—approach to sharing information, a webinar panel...

    • life sciences podcast Reform of NHS levy ‘harms UK competitiveness’

      Boards in the pharmaceutical and life sciences sector face increasingly difficult decisions, according to a...

  • Careers
      • View all
      • Selection
      • Board Moves
    • CEO talent Can high CEO turnover boost gender equality?

      The trend for boards favouring internal pipelines for CEO succession creates an opportunity to nurture...

    • Starbucks sign outside shop in Warsaw, Poland DEI policies are targets for litigation, warns US lawyer

      Right-wing activists will continue to sue corporates over diversity, equity and inclusion policies they perceive...

    • CEO churn CEO churn is highest since 2019

      Chief executive appointments in the FTSE 100 are also up—but only 27% of incoming CEOs...

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • ciia risk in focus

      Risk in Focus 2024: Hot topics for internal auditors

      Risk in Focus 2024 surveyed chief audit executives on their key challenges: geopolitical uncertainty and cybersecurity...

    • G20/OECD Principles of Corporate Governance 2023 cover

      G20/OECD Principles of Corporate Governance 2023

      The G20/OECD principles help policy makers improve the regulatory and institutional framework for corporate governance.

    • stakeholder engagement

      Director Reference Guide: Stakeholder engagement

      Board Agenda's 'Director Reference Guide' for boards on building an honest and trust-based relationship with...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

Government’s own governance code is ‘not fit for purpose’

by Gavin Hinks on June 20, 2023

Opacity around the recruitment of Whitehall NEDs may undermine their contribution and damage public confidence, says select committee.

government non-exec

Matt Hancock had an affair with a NED in his department. Image: ITS/Shutterstock.com

The government has been told it needs to replace its own corporate governance code after a committee of MPs concluded it was “not fit for purpose”.

The complaint centres on the independence of non-executive directors of government departments: a report concludes that a minority of them are appointed from “within government” or “through personal associations”.

The public administration and constitutional affairs committee, set up to examine the quality and standards of government administration, is “concerned” about the impact the appointments may have on the ability of non-executives to provide “effective challenge” to ministers and departmental boards.

William Wragg, the committee’s chair, says there needs to be a clearer separation between the roles of “political or personal advisers” and “objective non-executive board members”. Recruitment of non-execs should therefore follow a “fair and open” process.

“Non-executive directors often bring valuable outside experience into government,” Wragg says. “However, not enough is known about who they are, what they do, or how they are recruited. This risks damaging public confidence in non-executives and undermining their potential contribution.”

Wragg went on to say that the committee found some non-execs had roles that were “significantly greater in scope than publicly advertised” and these “vary between departments”.

He says the government’s “lead non-executive” should act as a regulator to “bring much needed consistency and accountability to the role across government”.

‘Personal connections’

The committee has now made a series of recommendations to government including, at the top of its list, a rewriting of the government corporate governance code or replacing it.

He adds that ministers should avoid appointing non-executives “with clear political or personal connections” and should also not replace all departmental non-executives at once.

The appointment of non-executives to government departments has been the subject of long-running controversy.

In 2021, health secretary Matt Hancock (pictured) caused headlines after it emerged he was having an affair with Gina Coladangelo, a non-executive at the Department of Health and Social Care. Hancock eventually resigned over a film showing the pair in a clinch and breaking social distancing laws in his office.

There was concern that ministers are not currently required to publish the criteria they use for appointing non-executives. Although government has moved to introduce a greater degree of transparency, many have argued it is not enough.

The new report demands that government publishes the terms of reference for each departmental board with individual responsibilities for each board member, board minutes and registers of interest.

The committee also seeks a “pre-appointment” hearing with any holder of the government lead non-executive role.

The business of government is fraught with political sensitivities. The committee’s recommendation for non-executives appears to be a good place to start resolving governance issues.

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Corporate governance code review boosts internal controls
    May 25, 2023
    boost audit

    UK watchdog’s proposals include giving audit committees greater reporting responsibilities and addressing ‘overboarding’.

  • Governance code reforms will ramp up internal controls
    July 12, 2022
    Patisserie Valerie

    Watchdog ‘lays groundwork for the creation of ARGA’ with planned consultation on audit committee ‘minimum standards’.

  • News round-up: this week in governance
    July 15, 2022
    Elon Musk Twitter

    Dutch stakeholder committees; Elon Musk's next move on Twitter; C-suite partisanship in the US; ESG 'no distraction' from climate change.

  • News round-up: this week in governance
    August 5, 2022
    carillion fine

    Audit firms' complaints about fines; Carillion directors' fines revealed; is it time to abolish the UK governance code?

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

accountability, corporate governance, cronyism, Department of Health and Social Care, Gina Coladangelo, government, government NED, lead non-executive, leadership, Matt Hancock, NED recruitment, NEDs, news, non-executive directors, transparency, Whitehall, William Wragg

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • ‘Fast-moving threats’ will soon challenge boards, warns CIIA
  • News round-up: this week in governance
  • Meta faces US lawsuit over its corporate governance
  • Say-on-pay votes lack link to sustainability
  • How to integrate sustainability into financial decision-making

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

Leadership ESG

Leadership in ESG Integration: a study into UK board oversight, implementation and disclosure

This research report is based on detailed response...
The Engagement Appeal: The Path to Inclusive Investor Engagement

The Engagement Appeal: The Path to Inclusive Investor Engagement

This is the inaugural white paper from The Engagem...
Mazars c-suite 2023

Mazars C-suite barometer 2023

The Mazars C-suite barometer is based on responses...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...
 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|