The Government’s team, created to advise departments in their roles as key stakeholders in major companies, will now have direct responsibility for these shareholder interests, the Cabinet Office announced today.
As a result, the Shareholder Executive will take on the Government’s interests in Royal Mail, BNFL, UKAEA, Royal Mint, Partnerships UK and Actis.
The Shareholder Executive will now lead the Government’s day-to-day relationships with certain Government-owned companies and advise Ministers on the shareholder issues including objectives, governance, appointments, remuneration, strategy and performance monitoring of these companies.
As a consequence, the Shareholder Executive will join the DTI and incorporate existing expertise in DTI’s shareholding teams. The Shareholder Executive will continue to report to the Cabinet Secretary for the overall success of its mission.
Currently, there are nine government departments that have responsibility for more than twenty Government-owned businesses.
The Shareholder Executive will continue to work with government departments to strengthen their skills and experience as owners of shareholdings in a range of public and private sector companies, as well as some commercial trading funds.
The Executive will also become the Government's centre for corporate finance and governance, advising departments on shareholder-related management, corporate governance and finance issues as well as wider corporate finance and other industrial issues.
Cabinet Secretary, Sir Andrew Turnbull said:
’These changes represent part of the current programme of Civil Service reform. They will create a strong and highly experienced professional group that has a strong mix of commercial, financial and Civil Service skills and which will now take the lead on managing a material part of the Government’s portfolio of shareholdings.
’The Government created the Shareholder Executive to bring together departmental and external expertise to strengthen the position of departments as stakeholders in major companies. This has been achieved during a short period of time and will continue to develop through the enhancement of the Shareholder Executive’s role.’
Permanent Secretary of the DTI, Sir Robin Young, said:
’By bringing together in the Department a powerful mix of commercial, financial and Civil Service skills and streamlining the number of parties within government taking an active interest in these businesses, we present a more coherent front to the companies concerned. It will help to put DTI at the forefront of the professionalisation agenda across the Civil Service.’
Also announced today, are the appointments to the Shareholder Executive as Directors of Stephen Lovegrove, former head of European Media at Deutsche Bank investment banking, and Mark Turner, Director, Corporate Development at Rexam PLC.
Notes to editors:
The Shareholder Executive was created within the Cabinet Office in September 2003 under the leadership of Richard Gillingwater, a senior investment banker from Credit Suisse First Boston. It comprises a team of fifteen drawn from a mix of commercial, financial and Civil Service backgrounds.
The Shareholder Executive will take on the DTI’s shareholder interests in Royal Mail, BNFL and UKAEA, reporting to DTI Ministers. Similarly, they will take on from the Treasury and DFID shareholder roles in respect of the Royal Mint, Partnerships UK and Actis, reporting to Treasury and DFID Ministers.
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