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Appointments
and Performance Review Committee
01 December
2020
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Update
on the 2020 Board Appointment Programme for Auckland Council's
Council-Controlled Organisations
File No.: CP2020/09115
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on the programme of appointments to the boards of
Auckland’s council-controlled organisations, and noting that decisions
will be made in the confidential part of the committee meeting.
Whakarāpopototanga matua
Executive summary
2. Auckland
Council appoints directors to the boards of its council-controlled
organisations (CCOs).
3. On
25 August 2020, this committee approved the commencement of the annual board
appointment programme for 2020. This included agreeing the relevant
skills required to fill vacancies on the CCO boards (APR/2020/11).
4. The
process for identifying and interviewing candidates for these roles continues,
and a confidential report on this agenda asks the committee to make decisions
on appointing directors for vacancies on the boards of:
(i) Auckland
Transport - two director vacancies
(ii) Panuku
Development Auckland (Panuku) – board chair
5. The
confidential report also asks the committee to make decisions on:
(i) shortlisting
candidates to interview for the Watercare Services Limited (Watercare) director
vacancy
(ii) approve
the brief for the director vacancy on the board of Auckland Unlimited, which
includes a focus on arts and culture issues.
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Ngā tūtohunga
Recommendation/s
That the Appointments and
Performance Review Committee:
a) note
that a confidential report is included on today’s committee agenda that
provide information to make decisions regarding:
i) the
appointment of two directors to Auckland Transport board
ii) the
appointment of the Panuku Development Auckland Limited board chair
iii) shortlisting
candidates to interview for the Watercare Services Limited director vacancy
iv) agree
the brief for a director vacancy on Auckland Unlimited, which includes a
focus on arts and culture experience
b) note
that the confidential report contains personal information about candidates
and should remain confidential.
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Horopaki
Context
6. The
board appointment process for CCOs has been followed and is outlined in the
table below:
7. Council’s
appointment policy notes that board appointments will be made on the basis of
the skills, knowledge and experience which the board as a whole requires, with
due regard being given to the benefits of diversity on the board.
8. Council’s
Inclusive Auckland Framework has a focus on increasing diversity on
council-controlled organisations and fostering a strong and diverse talent
pipeline for its appointment process.
9. The
council’s policy states that in normal circumstances a director is
eligible to be appointed to the board of a substantive CCO for two terms of
three years. This is intended to help achieve a balance of experience and
fresh thinking on individual boards.
10. However, the
policy also recognises that sometimes there are good reasons to approve
extensions beyond the two three-year terms, up to a maximum of a total of nine
years on a board.
11. A
confidential report on this agenda provides advice to assist the committee to
make decisions regarding the director vacancies on Auckland’s CCO boards.
12. The
selection panels responsible for the appointments to the Auckland Transport and
Panuku boards have completed their interviews of the candidates that were
shortlisted by this committee. The confidential report on this agenda
asks the committee to make decisions on appointing directors for vacancies on
the boards of:
(i) Auckland
Transport - two director vacancies
(ii) Panuku
Development Auckland (Panuku) – board chair.
13. The selection
panel responsible for the Watercare board appointment has considered the
candidates for this role. The confidential report also asks the committee
to make decisions on shortlisting candidates that the selection panel has
recommended to be interviewed for this director vacancy.
14. Finally, a
brief outlining the skills and experience required for a director on the
Auckland Unlimited board has been prepared. This brief focuses on
candidates with experience in the arts and culture sector. The
confidential report also asks the committee to make decisions regarding the
brief for this director role.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
15. Following the
25 August 2020 meeting the committee approved the brief for one director
vacancy on Auckland Transport’s board, which included a focus on climate
action.
16. This
appointment will look to positively impact the future of transport for
Aucklanders and contribute to the advancement and achievement of the
council’s overall climate strategy.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
17. It
is essential that a CCO’s decisions align with the council’s plans
and policies. All CCO director appointments are critical to the
leadership of each organisation, and the effectiveness of the council group as
a whole.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
18. Board
appointments to CCOs are the role of the Governing Body. Local boards can
participate in the nomination process for each director vacancy. The
nomination of a candidate requires the consent of that candidate.
19. The views of
local boards have not been sought in relation to these appointments.
Tauākī whakaaweawe
Māori
Māori impact statement
20. Auckland
Council’s appointment and remuneration policy for board members of
council organisations (the policy) states that the council “values and
supports the benefits that diversity of thought, experience and skills bring to
our CCO Boards. We recognise that increasing diversity and fostering inclusive
Board culture is an essential element in supporting high performing boards,
driving long-term success and delivering better outcomes for the communities of
Auckland”.
21. The policy
therefore encourages the identification of appropriately experienced Māori
directors for consideration for appointment to CCO boards.
22. In addition,
an Independent Māori Statutory Board member is involved in the appointment
process by being a member of the selection panel. This ensures that a Māori
perspective informs the recommendations of the selection panel during the
shortlisting, interviewing and appointment processes.
23. The
Independent Māori Statutory Board is also represented on this
committee. This ensures a Māori perspective is brought to the
decision-making process, and that the Independent Māori Statutory
Board’s views are considered by the
committee.
24. At the 25
August 2020 meeting this committee agreed to strengthen the focus areas in
vacancy briefs by including the following statements in the common priorities
for all director vacancy briefs (advertisements):
(i) Uphold
the principles of the Treaty of Waitangi, readiness to promote improved
outcomes for Māori, knowledge of Te Ao Māori, and established Māori
networks (APR/2020/10).
Ngā ritenga
ā-pūtea
Financial implications
25. The
costs associated with these appointments will be managed from existing budgets.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
26. There are risks associated with all board appointments including:
i. Reputational:
breach of privacy if confidential candidate information is provided to media
outlets prior to final decisions being made by the committee. The risk is
fewer and potentially less qualified candidates being attracted into future
board appointment programmes. To mitigate the risk staff will continue to
highlight the need for maintaining confidentiality during the board appointment
programme
ii. Reputational:
all candidates are appropriately screened to meet the skill requirements for
appointment to entities such as these and that they have appropriate governance
experience especially within public-facing entities. To mitigate any
potential risks of disqualified directors or under-qualified candidates:
(a) a
thorough due diligence process will be completed on all candidate applications
in line with the council’s appointment policy
(b) short-listed
candidates have completed the council’s director consent form prior to
interview which requires directors to confirm that there is nothing that would
disqualify them from being a director
(c) thorough
reference checks of candidates who are approved for appointment to the
council’s CCO boards, are conducted by Kerridge and Partners.
iii. Governance:
the risk of an unbalanced board where a loss of institutional knowledge impacts
decision-making. Conversely, retaining board members for too long can
mean the board lacks innovation and fresh thinking.
Ngā koringa ā-muri
Next steps
27. Staff will
give effect to the committee’s resolutions.
28. A media
statement will be provided by the Mayor following the approval of the
successful candidates being appointed as chair of Panuku and directors on
Auckland Transport’s board.
29. An update
report regarding the outcome of interviews for the director vacancy on
Watercare’s board will be reported to the 2 February 2021 meeting.
30. The
shortlisting report for two director vacancies on Panuku’s board will
also be reported to the 2 February 2021 meeting.
31. The outcomes
of these outstanding vacancies are reliant on the members of the two selection
panels being available to meet and complete the work within reporting
timelines.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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Josie Meuli - Senior Advisor
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Authorisers
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Alastair Cameron - Manager - CCO Governance &
External Partnerships
Phil Wilson - Governance Director
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