Appointments and Remuneration Committee

Use the links below to find out more about the Appointments and Remuneration Committee:

Purpose

The purpose of the CITB Appointments and Remuneration Committee is to consider, agree and recommend to the CITB Board an overall HR strategy, remuneration policy and philosophy for CITB that is aligned with its long term business strategy, business objectives, risk appetite and values.

The Committee has particular engagement with the work of the CITB Head of HR and will liaise, as required, with the CITB Audit and Risk Committee in relation to risk-adjusted performance measures to confirm that the Remuneration Policy is in line with sound and effective risk management.

The Committee will advise and provide assurance to the Board on:

  • The appointment of the CEO, Board, Nation Councils and Board Committee members, including plans for the capacity building of existing and prospective members.
  • Remuneration Policy, to include the budget for annual salary increases; all aspects of remuneration in respect of the CEO and each direct report to the CEO (including performance target outcomes and other commitments to be made on redundancy, retirement, resignation or dismissal).
  • Succession Planning process for members of the CITB Executive and Leadership Teams.
  • The on-going monitoring of HR KPIs in the context of the CITB strategic plan.

Membership

Current Committee Members (as at April 2018) are:

  • Maria Pilfold - Chairperson and CITB Board Trustee
  • Diana Garnham - CITB Board Trustee
  • Karen Jones - CITB Board Trustee

Dates of meetings and attendance rate

2018 meetings will take place in February, June and November 2018. 

 

Attendance at 2018 Meetings

 

February

June

November

Maria Pilfold

Y

 

 

Diana Garnham

Y

 

 

Karen Jones

Y

 

 

Ray Wilson*

Y

*Resigned from Committee in February 2018

Summary of committee discussions

Below is a summary of discussions at each committee meeting in descending date order.

23 November 2017

  1. The committee received a paper and presentation on executive remuneration benchmarking, taking into account six comparator groups, to inform their decision making on potential incremental changes to executive salaries.  An overview of the CITB current executive salaries was presented on benchmark data. This encompassed salary and total cash against non-departmental public bodies, the senior civil service, and professional bodes, general industry survey, charities and public-private partnerships.  A premium was expected on salaries within the private sector and general industry due to risk factors.  It was noted that a new incumbent in post would be paid slightly less than a past incumbent.  There had been a lack of data on public roles, thus generic benchmarking had been used for roles under CEO level.  
  2. The committee received a paper from the Head of HR on Succession Planning for the Executive and Leadership Teams.  Following the last committee meeting held on 20 July 2017, a number of steps had been taken resulting in a revised structure for succession planning which was presented to the Committee.  A robust succession and talent management plan had been developed.  A Talent Management and Succession Planning Strategy were presented to the committee.  Outcomes for personal performance plans against objectives for the identified personnel were being reviewed for consistency by HR Business Partners.  The succession plan work would continue with new objectives being set in the year in line with the Future Operating Model.  Calibration sessions led by the HR team were having a positive effect, as movement could be seen in ratings and linkage being made between teams and joint organisational outcomes.  The committee noted that two Leadership Team members had stepped up to be members of the Executive.  The committee commended the work carried out by the Head of HR, noting that it gave them greater assurance on succession.  
  3. The CEO gave an update on Strategic KPIs and requested the committee’s input and views on the Strategic KPIs they would want to see measured in 2018 and beyond.  The committee recommended documentation of technical processes.  
  4. The committee discussed the modalities for the nomination and appointment of members for the new Nation Councils.  A workshop was going to be held for the Board in January 2018 and issues to consider would include: clarity on what was needed in place to populate the membership and whether it was achievable in the timeframe; consider inserting a statement on diversity and inclusion in the terms of reference; consider composition of members being senior people with interests in strategic areas of the industry i.e. forward-thinking diverse people; consider having a Board Trustee as Vice Chair; prepare a draft paper on the recruitment process and circulate to members for consideration by the Board. 

20 July 2017

  1. The committee acknowledged the content of the executive pay implementation and schedule update, market practice update and new reward dashboard report. 
  2. The committee confirmed that the CEO objectives had been discussed with the CITB Chairman on 19 July 2017.  These needed to be finalised with the CEO.  Clarity was sought in the form of a governance map detailing key decision making points in the annual cycle.  The CITB Chairman had sought views of the Board before completing the CEO’s appraisal, together with feedback from stakeholders.  The Head of HR would follow up with the Chairman to ensure the final ‘year-end’ review in March 2018 would contain greater detail. 
  3. The committee discussed the CEO’s proposed salary arrangements; details had been submitted to the Department for Education.  In light of the size of the organisation and evidence from a  number of other organisations (Public and NDPB)  which had been shared amongst the committee, it was agreed that the salary should remain the same as the exiting Chief Executive. However, the pension contribution by CITB would be significantly smaller. 
  4. The CEO informed the committee of the indicative 2017 performance ratings for the members of the CITB Executive Team.
  5. The CEO provided a pension update to the committee.  Investments were tracking performance ahead of plan. 
  6. The Head of HR presented a paper concerning leadership development including succession planning and talent development.  The committee challenged the use of contractors and asked why the HR team could not provide these services.  The Head of HR explained that in order for the feedback sessions to run successfully, impartiality was required and working relationships between HR Business Partners and participants were close and could potentially be damaged.  The committee discussed the positioning of the HR and Finance functions in the organisation and committed to review that within the context of the revised Executive Team structure.

24 January 2017

  1. The Head of HR had completed negotiations with the unions concerning the pay offer as delegated at the last meeting on 16 November 2016.  The unions proposed that they would recommend the proposed offer.  CEO contingency cover was clarified.
  2. The committee discussed the appointment of Sarah Beale as Interim CEO.  It was acknowledged that following a tele-conference held on 19 January 2017 between the committee members, the offer had been set aside as to allow this committee to discuss and agree the terms and conditions which the position of Interim CEO would operate under.  The committee were in agreement that Sarah Beale was the right individual to take on the position of Interim CEO.  
  3. The Committee received a paper that recommended high level workflow and preparation requirements for committee meetings moving forward in 2017/18.  The paper further covered the implementation of the key components of the CITB Executive reward philosophy and principals to support the decision making process.  The committee agreed with the proposed calendar schedule that had been developed based on a 15 month transition period to accommodate a change of accounting period. It was agreed that a number of reference points would be considered and include ‘Gender Pay’.  
  4. The committee received a paper concerning Executive Objectives.  The directorship roles were identified and clarity was sought as to responsibilities in order to ensure a fair distribution of responsibilities across the Executive Team.  The committee agreed with the performance review process. Measures were to be provided in respect of delivery of the objectives.  Further work was considered necessary in respect of the Executive objectives to make a clear link between the CEO and the Executive members.  The objectives needed more detail as to operational activities together with specific measures.  
  5. The committee chair advised that interviews in respect of the Union/Construction Services and Specialist Contractor Seats on the CITB Council had been undertaken.  The final interview was being undertaken on 30 January.  The Youth/Learner seat should be re-advertised and consideration be given to ensure the correct media is used.
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