The Role of Non-Executive Directors in Government

Public Administration and Constitutional Affairs Committee Closed Inquiry
Opened: 7 Jun 2022 Closed: 9 Oct 2023 Parliament page
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. Read more
21 Recommendations
6 Conclusions
1 Report
3 Oral sessions
1 Letter
3 Events
Activity timeline 9 events
8 Sep
2023
Report published
20 Jun
2023
Report published
7 Feb
2023
Correspondence
17 Jan
2023
Oral evidence
17 Jan
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
8 Nov
2022
Oral evidence
8 Nov
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
19 Jul
2022
Oral evidence
19 Jul
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
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
6 results
Clear
2 Recommendation Rejected
Seventh Report - The Role of Non-E…
Update or replace the Corporate Governance Code to define non-executive directors' comprehensive roles.
The Corporate Governance Code is not fit-for-purpose as the main guidance document for NEDs, given it does not encompass all of their work in Government. It should be updated or replaced by the end of the calendar year to set … Read more
Government Response
The government rejects the recommendation that the Corporate Governance Code is not fit-for-purpose, stating it will only consider updates while prioritizing departmental flexibility rather than a prescriptive new document.
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6 Recommendation Rejected
Seventh Report - The Role of Non-E…
Non-executive director appointments from within government undermine independence and public confidence.
The Corporate Governance Code says NEDs will be “experts from outside Government”. However, we have highlighted examples in this Report of individuals that appear to have been recruited to NED roles from within Government or through personal connections. This includes … Read more
Government Response
The government largely rejected the concern about NEDs from within government or with political connections, asserting that previous political activity is not a bar to appointment and former civil servants or political advisers can bring advantageous experience, while stating it will continue to follow the Governance Code.
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8 Recommendation Rejected
Seventh Report - The Role of Non-E…
Update the Corporate Governance Code to reinstate non-executive board member independence and restrict politically connected appointments.
The Committee recommends that the Corporate Governance Code is updated to reinstate the “independence” of non-executive board members, which was removed from the 2011 and 2017 editions of the Code. The updated Code should outline the expectation that Secretaries of … Read more
Government Response
The government rejects the recommendation to reinstate 'independence' and avoid appointing individuals with political connections, arguing that such exclusions are not aligned with existing codes or are inappropriate for former Special Advisers and serving Peers.
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9 Recommendation Rejected
Seventh Report - The Role of Non-E…
Prioritising commercial experience for Non-Executive Director roles risks limiting applicant diversity.
The Corporate Governance Code for Central Government Departments states that non-executive board members will be primarily from the commercial private sector and the Committee recognises the value individuals with this experience can bring to departmental boards. However, written evidence from … Read more
Government Response
The government rejected the recommendation to reduce the priority of commercial experience, arguing that while the current NEBM cadre includes diverse experience, the benefits of strong commercial representation on boards are very apparent.
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19 Recommendation Rejected
Seventh Report - The Role of Non-E…
Mandate the Government Lead Non-Executive to monitor compliance with the Corporate Governance Code
The Committee is concerned by the variability in board performance, the differing commitment of Secretaries of State in engaging with departmental boards, and examples of non-compliance with the Corporate Governance Code which are not being reported in departments’ annual reports … Read more
Government Response
The government rejected the recommendation, stating that compliance monitoring lies with Principal Accounting Officers and it would be unhelpful for the Government Lead Non-Executive to intervene in a monitoring or enforcement role.
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27 Recommendation Rejected
Seventh Report - The Role of Non-E…
Subject future Government Lead Non-Executive candidates to pre-appointment hearings with the Committee.
We recommend that future candidates to the role of Government Lead Non-Executive should be subject to a pre-appointment hearing by the Public Administration and Constitutional Affairs Committee. We also recommend that, as has been practice in the past, the Government … Read more
Government Response
The government rejects the recommendation for the Government Lead Non-Executive to be subject to pre-appointment hearings, stating the role does not meet the necessary criteria for such scrutiny.
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Government Response AI assessment · 27 of 21 classified
Accepted 4
Accepted in Part 6
Acknowledged 7
Deferred 3
Not Addressed 1
Rejected 6
Total 21 recs + 6 conclusions
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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