The Role of Non-Executive Directors in Government
Public Administration and Constitutional Affairs Committee
Closed
Inquiry
Non-executive directors (NEDs) have existed in Government departments in their current form since 2010, but little is known about their roles and impact. The aim of this inquiry is to explore the responsibilities, backgrounds, and influence of non-executives, as well as the appointments process, appropriate roles, and mechanisms for accountability.
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21
Recommendations
6
Conclusions
1
Report
3
Oral sessions
1
Letter
3
Events
Activity timeline 9 events
8 Sep
2023
2023
20 Jun
2023
2023
Report published
7 Feb
2023
2023
17 Jan
2023
2023
Oral evidence
17 Jan
2023
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
8 Nov
2022
2022
Oral evidence
8 Nov
2022
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
19 Jul
2022
2022
19 Jul
2022
2022
Formal meeting (oral evidence session) · Room 16, Palace of Westminster
Oral evidence sessions 3 sessions
17 Jan 2023
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The Role of Non-Executive Directors in Government
Michael Jary · Cabinet Office
Rt Hon Jeremy Quin MP · Cabinet Office
8 Nov 2022
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The Role of Non-Executive Directors in Government
Dame Sue Street DCB · Ministry of Justice
Miranda Curtis CMG · Foreign and Commonwealth Office
Sir Ian Cheshire · Channel 4
19 Jul 2022
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The Role of Non-Executive Directors in Government Session: 2022-23 Inquiry
Alan Cogbill · Constitution Unit, University College London
Dr Matthew Gill · Institute for Government
Mr Martin Wheatley · Commission for Smart Government
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Seventh Report - The Role of Non-Executive Directors in Governme… | HC 318 | 20 Jun 2023 | 27 | Responded |
Recommendations & Conclusions
4 results
11
Conclusion
Accepted
Seventh Report - The Role of Non-E…
Inconsistent, opaque, and unaccountable recruitment processes for departmental Non-Executive Directors are unsatisfactory.
The Corporate Governance Code stipulates that non-executive board members should be appointed on merit through a fair and open process. The current Government Lead Non-Executive told the Committee that a small proportion of NEDs currently in post have been directly …
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Government Response
The government states that all NEBM appointments now comply with the Governance Code, ensuring transparency and consistency through public appointment processes. They agree that Code departures should be reported and will consider summarising these in the Government Lead Non-Executive's annual report.
12
Recommendation
Accepted
Seventh Report - The Role of Non-E…
Ensure full departmental transparency in NED recruitment and require prompt publication of appointment details.
The Government Lead Non-Executive should ensure that every department is fully transparent about the recruitment process for its NEDs and that all departures from the Corporate Governance Code are justified in the governance statements of departments’ annual report and accounts. …
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Government Response
The government stated that existing processes address transparency, with departures from the Corporate Governance Code disclosed in annual reports, appointments announced on GOV.UK pages, and adverts published on the Cabinet Office website detailing the process.
14
Conclusion
Accepted
Seventh Report - The Role of Non-E…
Disappointing lack of progress implementing CSPL recommendation for Non-Executive Director appointment regulation.
The Government has indicated that it will implement the Committee on Standards in Public Life’s (CSPL) recommendation that NED appointments should be regulated by the Commissioner for Public Appointments, which we welcome. However, it is disappointing that it appears no …
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Government Response
The government confirms it has met the commitment by updating the Public Appointments Order in Council 2023, which now includes the regulation of non-executive directors to ministerial department boards by the Commissioner for Public Appointments.
26
Recommendation
Accepted
Seventh Report - The Role of Non-E…
Subject the Government Lead Non-Executive to direct parliamentary scrutiny and oversight
The Committee acknowledges the arguments against NEDs being formally accountable to Parliament for any departmental or policy-specific matters, given the potential implications for the principle of ministerial responsibility. However, we believe that the Government Lead Non-Executive, as a quasi-regulator and …
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Government Response
The government does not agree with the committee's characterisation of the Government Lead Non-Executive as a quasi-regulator, but notes that GLNEDs have historically appeared before the committee and will continue to make themselves available for scrutiny.
Correspondence 1 letter
7 Feb 2023
To committee
Letter from Rt Hon Jeremy Quin MP on the role of Non-Executive Directors, dated 31.1.23
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