I hereby give notice that an ordinary
meeting of the Performance and Appointments Committee will be held on:
|
Date:
Time:
Meeting Room:
Venue:
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Tuesday, 27
August 2024
10.00am
Room 1, Level
26
Te Wharau o Tāmaki - Auckland House
135 Albert Street
Auckland
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Komiti mō ngā Kopounga me Te
Kounga o ngā Mahi / Performance and Appointments Committee
OPEN ADDENDUM AGENDA
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MEMBERSHIP
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Chairperson
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Cr Daniel Newman, JP
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Deputy Chairperson
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Cr Mike Lee
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Members
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Mayor Wayne Brown
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Cr Christine Fletcher, QSO
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Cr Lotu Fuli
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Cr Richard Hills
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Cr Greg Sayers
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Cr John Watson
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Cr Maurice Williamson
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Ex-officio
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Deputy Mayor Desley Simpson, JP
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Houkura Chair David Taipari
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(Quorum 4 members)
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Sonja Tomovska
Kaitohutohu Mana Whakahaere Matua /
Senior Governance Advisor
23 August 2024
Contact Telephone: +64 21 417 830
Email: Sonja.tomovska@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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Performance and Appointments Committee
27 August 2024
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ITEM TABLE
OF CONTENTS PAGE
8 Process
to make appointments to the boards of Council Organisations 5
9 Review
of remuneration for directors of substantive council-controlled organisations 9
10 Criteria
for the appointment of Watercare Services Limited directors 17
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Performance and Appointments Committee
27 August 2024
|
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Process to
make appointments to the boards of Council Organisations
File No.: CP2024/11670
Te take mō te
pūrongo
Purpose of the report
1. To
receive information about processes to make board appointment decisions
considered in the confidential part of this meeting.
Whakarāpopototanga matua
Executive summary
2. Confidential
reports on this agenda seek decisions about the boards of the following
entities:
· Auckland
Future Fund Trustee Limited
· Auckland
Transport
Ngā tūtohunga
Recommendation/s
That the Performance and Appointments
Committee:
a) tuhi ā-taipitopito / note the information
about appointment processes contained in this report and note that reports on
this agenda seek decisions regarding:
i) Auckland
Future Fund Trustee Limited
ii) Auckland
Transport
b) tuhi ā-taipitopito / note that these reports are confidential
due to the personal information regarding candidates that they contain.
Horopaki
Context
3. Council makes appointments to council
organisations in accordance with the Appointment and Remuneration Policy for
Board Members of Council Organisations (the Policy).
4. The general process for making appointments is
described in Figure 1 below.
Figure
1: Appointment process
5. Under
the Policy where appointment processes must be made promptly, the committee may
delegate the approval of the short-list to a panel consisting of the chair and
deputy chair of this committee and the chair of Houkura Independent Māori
Statutory Board.
Tātaritanga me ngā
tohutohu
Analysis and advice
6. The confidential reports on this agenda consider
the decisions noted in Table 1:
Table 1: Overview of decisions sought in the confidential
reports
|
Entity name
|
Decisions sought
|
Previous decisions
|
|
Auckland Future Fund
Trustee Limited
|
Appointment of inaugural
board members
|
· Approval
of criteria and delegation to approve a short-list of candidates [PACCC/2024/38]
|
|
Auckland Transport
|
Approval to appoint a
deputy chair
|
· No
previous decisions.
|
Tauākī whakaaweawe
āhuarangi
Climate impact statement
7. Auckland
Council’s Te-Tāruke-ā-Tāwhiri: Auckland’s Climate
Plan was adopted in July 2020 and sets out the priority action areas to deliver
our goals to reduce emissions and adapt to the impacts of climate change.
8. CCOs are
responsible for delivering services to Aucklanders. Each CCO is accountable for
ensuring their planning and decisions reflect the action areas outlined in
Te-Tāruke-ā-Tāwhiri.
9. Candidates
seeking appointment need to demonstrate a commitment to integrate the action
areas outlined in Te Tāruke-ā-Tāwhiri into the CCO’s
activities.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
10. The appointment of the best possible directors to boards
will have a positive impact on the council group.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
11. Board appointments to the entities considered in the
confidential reports are a responsibility that sits with the Governing Body.
Local Boards may participate in the nomination process for board vacancies and
criteria are circulated to local boards to allow their participation in the
nomination process.
Tauākī whakaaweawe
Māori
Māori impact statement
12. Kia ora Tāmaki Makaurau sets as a mahi objective that:
“Mana whenua and Māori are active partners and participants at all
levels of the council group’s decision making”. This objective is considered
as part of the decision making for each of the confidential items on this
agenda.
Ngā ritenga
ā-pūtea
Financial implications
13. There are no new financial implications arising from the
confidential reports.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
14. There are risks
common to all board appointments. These include:
· Reputational
risk of appointing candidates without appropriate skills or governance
experience. To mitigate this potential risk, a thorough due diligence process
is in place.
· Governance
risk of creating an unbalanced board where too many new members cause a loss of
institutional knowledge which impacts decision-making. Conversely,
retaining board members for too long can mean the board lack innovation and
fresh thinking.
Ngā koringa ā-muri
Next steps
15. Next steps regarding appointments to the respective
organisations are noted in the confidential agenda reports.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Author
|
James Stephens - Senior Advisor
|
|
Authorisers
|
Anna Bray - General Manager Group Strategy,
Transformation and Partnerships
Max Hardy - Director Group Strategy and Chief
Executive Office
Phil Wilson - Chief Executive
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Performance and Appointments Committee
27 August 2024
|
|
Review of
remuneration for directors of substantive council-controlled organisations
File No.: CP2024/02425
Te take mō te
pūrongo
Purpose of the report
1. To approve
changes to director fees for board members of substantive council-controlled
organisations.
Whakarāpopototanga matua
Executive summary
2. The
Appointments and Remuneration Policy for Board Members of Council Organisations
(the Policy) requires a review of board member remuneration once per triennium
following local body elections. Decision making on the 2023 remuneration review
was considered and deferred by this committee in May 2023.
3. The 2023
remuneration review notes that since the last remuneration review in 2017, the
average director remuneration has increased by 8.2 per cent. It is recommended
that this rate of increase is applied to the remuneration for CCO directors to
maintain position within the market and continue to attract appropriate
candidates for these roles.
4. Tātaki
Auckland Unlimited (TAU) was amalgamated from Regional Facilities Auckland
(RFA) and Auckland Tourism Events and Economic Development (ATEED) in 2020. At
that time the remuneration of board members was not assessed against the size
and complexity of the new CCO. Staff recommend that TAU directors should be
remunerated at a higher rate because TAU has a significantly greater span of
responsibility than either of its predecessors.
5. The
additional cost to the council group arising from the recommended remuneration
increases is $271,200 per annum.
Ngā tūtohunga
Recommendation/s
That the Performance and
Appointments Committee:
a) whakaae/approve
an increase in base director fees of 8.2 per cent for directors of substantive
council controlled organisations as follows:
i) Band
one: $58,500 per annum
ii) Band
two: $44,500 per annum
iii) Band
three: $39,000 per annum
b) whakaae/approve
the increase of Tātaki Auckland Unlimited director fees from Band two to
Band one.
Horopaki
Context
6. A
decision to amend the remuneration of CCO directors is the responsibility of
the Performance and Appointments Committee.
7. Director
fees compensate board members for their contribution to the board and are set
at a level that is at or below the average for comparable private sector
entities. This is to reflect the element of public service inherent in these
roles.
8. The
Policy requires that the remuneration of board members be reviewed once per
triennium, following the local body elections. The last remuneration review was
undertaken in 2017, so this is now overdue.
9. In 2017,
the remuneration review recommended a 1.25 per cent increase to director fees
versus the general market movement of 2 per cent. This lower rate of increase
allowed for a nominal increase to director fees and reflected the public
service element of membership of CCO boards. It was noted that no issues were
identified with the attraction of high calibre director candidates to CCO
boards.
10. A remuneration
review was conducted in 2023, but decision making was deferred [PACCC/2023/27]. This report seeks the
consideration of the 2023 remuneration review following decisions made through
the Long-term Plan 2024-2034.
11. The Policy includes
that fees will be set taking into consideration the size and scale of the CCO,
the complexity and the level of expertise required to govern effectively. Board
members fees are to be set at or below the average of a comparable private
sector entity.
12. In 2011 council
adopted a methodology for assessing CCO director remuneration following advice
from MartinJenkins. This methodology established five bands of CCO director
remuneration based on the scale of each CCO.
13. The Policy includes
that board chairs will be remunerated at twice the base director fee, deputy
chairs at 1.25 times the base fee and 1.15 times for the chairs of
subcommittees established by the boards.
14. Base fees set in
2017 were as follows [APR/2017/66]:
· Band
one - $54,000 - Auckland Transport, Eke Panuku Development Auckland, Watercare
Services Limited
· Band
two - $41,100 - Auckland Tourism Events and Economic Development (ATEED),
Regional Facilities Auckland (RFA)
· Band
three - $35,525 - Auckland Council Investments Limited (disestablished in
2018).
15. Auckland Future
Fund Trustee Limited (AFFTL) was assessed as fitting within Band three [PACCC/2024/38].
Tātaritanga me ngā
tohutohu
Analysis and advice
Assessment of market movements
16. Strategic Pay
Limited’s New Zealand Directors’ Fees Report 2023 was used to
assess market movements for director fees. The market increase is reported as
being 8.2 per cent from 2018 to 2023. The Strategic Pay Directors’ Fees
Report notes that the average remuneration for directors of private sector
organisations with assets valued over $1 billion is $97,809.
17. Staff recommend
that remuneration for CCO directors increase in line with the market rate of
increase of 8.2 per cent. The policy direction that CCO remuneration should be
at or below the average for comparable private sector organisations is achieved
through the reduced rate of increase in previous remuneration reviews.
18. Director
remuneration at current levels has not prevented the appointment of appropriate
directors to CCOs, however council has received feedback from some candidates
and directors exiting boards that current remuneration is insufficient for the
size of these roles.
19. While this evidence
is anecdotal, staff consider that there is a risk that if remuneration does not
increase, the council will have a reduced ability to attract and retain the
commitment of the highly capable and diverse candidates that we seek for CCO boards.
20. The Auckland
Transport board members have an additional role each triennium as members of
the Regional Transport Committee. This committee represents a significant
additional piece of work to develop the Regional Land Transport Plan. The
Policy notes that in setting fees the committee may consider a temporary
increase in board workload. At the present time there is no additional
remuneration for Auckland Transport directors for this role. The committee may
direct staff to report back with options to provide additional remuneration for
Auckland Transport directors serving on the Regional Transport Committee.
21. The impact of an
increase to band one director fees of 8.2 per cent is noted in Table 2 below.
These figures are rounded.
Table 2: Impact of an 8.2 per
cent increase on director fees
|
Band
|
Current fees
|
8.2% increase
|
CCOs
|
|
Band one
|
$54,000
|
$58,500
|
Auckland Transport, Eke
Panuku Development Auckland, Watercare Services
|
|
Band two
|
$41,100
|
$44,500
|
Tātaki Auckland
Unlimited
|
|
Band three
|
$36,000
|
$39,000
|
Auckland Future Fund
Trustee Limited
|
Band assessment for Tātaki Auckland Unlimited
22. ATEED and RFA were
amalgamated into Tātaki Auckland Unlimited (TAU) in 2020. At this time the
relative scale of TAU compared with its predecessors was not assessed and
director fees have remained at Band two.
23. The MartinJenkins
methodology for assessing the banding of CCOs includes consideration of the
functions and scale of each CCO and applies scores based on those factors.
24. Staff have applied
the criteria to the function and scale of TAU and assess that it is of a scale
that makes it appropriate for director fees to be increased to Band one. This
assessment reflects the increased span of responsibilities of directors of TAU
in comparison with the narrower focus of its predecessors, ATEED and RFA. The
assessment is provided as Attachment A.
Options and costs
25. Four options are
noted in Table 3 below. The total cost of director remuneration for currently
appointed directors is $1,703,175. This baseline does not include upcoming
appointments to boards including the establishment of AFFTL.
Table 3: Options and costings
|
Option
|
Description
|
Financial
impact for the council group (change)*
|
|
Option
A
|
Status
quo: there is no change to base remuneration and TAU remains at Band
two.
|
$ nil
|
|
Option
B
|
No change
to base remuneration, TAU director remuneration is increased to Band one.
|
$119,325
|
|
Option
C
|
Remuneration
increases for all directors by 8.2 per cent and TAU remains at Band two
|
$141,700
|
|
Option
D
(Recommended)
|
Remuneration
increases for all directors by 8.2 per cent and TAU is also moved to Band one
|
$271,200
|
*The financial impact is based on current board sizes
and does not include the remuneration of committee chairs.
26. A further option
exists for the committee to consider an increase that is less than 8.2 per
cent. This is not recommended for the reasons given in paragraphs 17 to
19.
27. Option D is
recommended as it consistent with the banding methodology used by council and
reflects the market movements since the last remuneration review.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
28. This decision is
unlikely to result in any identifiable changes to greenhouse gas emissions. The
effects of climate change will not impact the decision’s implementation.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
29. Setting appropriate
board remuneration supports the attraction and retention of high-quality
candidates for director positions.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
30. Decisions regarding
the remuneration of board members of CCOs is the role of the Governing Body and
local board views have not been sought.
Tauākī whakaaweawe
Māori
Māori impact statement
31. Kia ora Tāmaki
Makaurau sets as a mahi objective that: "Mana whenua and Māori are
active partners and participants at all levels of the council group's decision
making". Ensuring that remuneration of directors is in line with market
expectations will help to attract a diverse range of strong director candidates
including Māori directors.
Ngā ritenga
ā-pūtea
Financial implications
32. Remuneration of
directors is met from CCO budgets and the increased costs recommended by this
report would therefore be met from the existing funding to each CCO.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
33. The key risks
associated with this decision are noted in the body of the report.
Ngā koringa ā-muri
Next steps
34. The updated
director fees will be applied by CCOs.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Tātaki Auckland Unlimited - Band assessment
|
15
|
Ngā kaihaina
Signatories
|
Author
|
James Stephens - Senior Advisor
|
|
Authorisers
|
Anna Bray - General Manager Group Strategy,
Transformation and Partnerships
Max Hardy - Director Group Strategy and Chief
Executive Office
Phil Wilson - Chief Executive
|
|
Performance and Appointments Committee
27 August 2024
|
|
Tātaki Auckland Unlimited – Banding assessment
Dimension:
|
|
Rating
|
Description
|
|
Budget
|
4
|
$100m-$300m
range
|
|
Assets
owned
|
4
|
$1-3b
|
|
FTE
numbers
|
5
|
501+
|
Scope and complexity
|
|
Rating
|
Description
|
|
Complexity
|
4
|
Some issues will be very complex
with few previous decisions for guidance
|
|
Function, level and scope of
Authority
|
5
|
Innovative - the development of new
concepts is required to find innovative and path-finding solutions.
There will be little or no external guidance (New Zealand or internationally)
to aid resolution of these issues
|
|
Function 1 - Advisory
|
3
|
Advisory at an important level with
generalised impact across major sectors
|
|
Function 2 – Provision of
services
|
3
|
The major provider of services where
there is limited competition
|
Accountability
|
|
Rating
|
Description
|
|
Impact
of decisions
|
2
|
Decisions
have a longer-term impact on groups of people or sectors of society
|
|
Public
profile
|
5
|
High
profile, broad public interest and scrutiny likely. Potential impact on
New Zealand's international reputation.
|
|
Risk
to personal reputation
|
4
|
Strong
public and stakeholder interest and importance would be associated with these
issues. Media interest would also be expected, but potential risk to
personal or the body's reputation is unlikely.
|
Skills
|
|
Rating
|
Description
|
|
Expertise
required
|
8
|
Substantial range of knowledge and
experience in a field or professional discipline, sometimes associated with
senior level functional or technical leadership, executive management, or
governance roles.
|
Total Rating: 47 – Band one
Banding:
|
Band
|
Score range
|
|
Band one
|
46+
|
|
Band two
|
37-45
|
|
Band three
|
27-36
|
|
Band four
|
13-26
|
|
Band five
|
12
or less
|
|
Performance and Appointments Committee
27 August 2024
|
|
Criteria for
the appointment of Watercare Services Limited directors
File No.: CP2024/11760
Te take mō te
pūrongo
Purpose of the report
1. To
approve criteria for selecting Watercare Services Limited directors.
Whakarāpopototanga matua
Executive summary
2. Two
members of the Watercare Services Limited (Watercare) board end their tenure
following the completion of the 2024 audit and at that time, the board will
have five members.
3. In
consultation with the chair of Watercare, criteria have been identified that
would strengthen the skills and experience of the board and the
committee’s approval is sought to initiate the recruitment of two
directors.
4. Criteria
for assessing candidates have been developed which seek to strengthen the board
in key areas. Skills to be brought by new members in combination are:
· the
ability to put Aucklanders and customers first in decision making with
experience contracting in public places and minimising disruption to the public
· experience
of utility industries, including working within regulatory frameworks on
pricing.
· experience
of audit, risk and insurance with skills to ensure that Watercare’s risks
are managed appropriately
· knowledge
of Te Ao Māori and in particular, knowledge of Tikanga Māori –
to provide the board with knowledge suitable to ensure that Watercare has
regard for protocols and maintaining strong relationships with iwi
· experience
raising funds to invest in capital projects that benefit Auckland and provide
exceptional value for money.
Ngā tūtohunga
Recommendation/s
That the Performance and
Appointments Committee:
a) whakaae
/ approve specific criteria for selecting two directors of Watercare Services
Limited as follows:
i) the ability to put Aucklanders and customers first in decision
making with experience contracting in public places and minimising disruption
to the public
ii) experience
of utility industries, including working within regulatory frameworks on
pricing.
iii) experience
of audit, risk and insurance with skills to ensure that Watercare Services
Limted’s risks are managed appropriately
iv) knowledge
of Te Ao Māori and in particular, knowledge of Tikanga Māori –
to provide the board with knowledge suitable to ensure that Watercare Services Limited
has regard for protocols and maintaining strong relationships with iwi
v) experience
raising funds to invest in capital projects that benefit Auckland and provide
exceptional value for money
b) tautapa / nominate up to two members to
serve on the selection panel for Watercare Services Limited directors
c) tuhi ā-taipitopito / note that the Houkura Independent
Māori Statutory Board is invited to nominate a member of the selection
panel.
Horopaki
Context
5. Auckland
Council makes appointments to the Watercare board in line with the Appointments
and Remuneration Policy for Board Members of Council Organisations (the
Policy).
6. The
constitution of Watercare sets a maximum of eight board members. Currently the
Watercare board has seven members as follows:
· Geoff
Hunt (Chair)
· Andrew
Clark
· Frederik
Cornu
· Nicki
Crauford
· Graham
Darlow
· Margaret
Devlin
· Julian
Smith.
7. Margaret
Devlin and Nicki Crauford’s terms end following the completion of the
2024 audit in September 2024 and this will reduce the board to five.
8. The
current base remuneration for board members of Watercare is $54,000.
Tātaritanga me ngā
tohutohu
Analysis and advice
9. The
chair of Watercare Services advises that at the current time a board of seven
members is desirable for the good governance of the organisation. To maintain
this number it is recommended that two new directors are recruited.
10. A skills matrix
noting the strengths of current board members has been circulated to members of
the committee in confidence.
11. In consultation
with the board chair and Mayors Office a set of criteria are proposed that seek
to strengthen the board of Watercare by addressing skill areas where the board
would benefit from additional expertise and knowledge.
12. The recommended
criteria for assessing the appointment of two directors are noted in Table 1
below:
Table 1: Recommended criteria
|
Criteria
|
Explanation
|
|
The ability to put Aucklanders and customers first in decision
making with experience contracting in public places and minimising disruption
to the public.
|
Director
candidates will understand the needs of Watercare customers, developers and
the general public with the skills and experience to ensure that decisions
are made for the benefit of Aucklanders.
|
|
Experience of utility industries, including working within
regulatory frameworks on pricing.
|
Candidates
will have relevant industry expertise and are able to guide the organisation
to meet its regulatory obligations while maintaining a customer-first
perspective on pricing. This is considered important with the
economic regulation framework being developed for the water sector.
|
|
Experience of audit, risk and insurance with skills to ensure
that Watercare’s risks are managed appropriately.
|
Audit,
risk and insurance skill sets are identified as being skillsets that are
desirable to strengthen the current board.
|
|
Knowledge of Te Ao Māori and in particular, knowledge of
tikanga – to provide the board with knowledge suitable to ensure that
Watercare has regard for protocols and maintaining strong relationships with iwi.
|
Candidates
will have the requisite knowledge of Te Ao Māori including tikanga
necessary to build and maintain strong governor-to-governor relationships
with relevant iwi and achieve outcomes for Māori.
|
|
Experience raising funds to invest in capital projects that
benefit Auckland and provide exceptional value for money.
|
Candidates
will strengthen the board’s expertise in overseeing capital raising to
allow for prudent investments in water infrastructure. This is considered
important as Watercare will begin borrowing in its own name, rather than
through council.
|
13. The recommended
criteria are in addition to the core competencies listed by the Policy which
are as follows:
· extensive
and relevant experience of industries and customers relevant to the operations
of the council-controlled organisation
· uphold
the principles of the Treaty of Waitangi, readiness to promote improved
outcomes for Māori and knowledge of Te Ao Māori and established
Māori networks
· demonstrate
appropriate accountability and responsiveness to the Governing Body and the
public and a commitment to public sector ethos
· demonstrate
financial accountability with close review of current and proposed activities
to deliver value for money
· commitment
to integrate council’s climate action plans into the strategies and
operations of the council-controlled organisations
· driving
appropriate leadership and cultural response to deliver the required outcomes
(and/or deliver on targets as identified)
· commitment
to collaborate across the council-controlled organisation family demonstrate
inclusive and adaptive leadership to harness the benefits of diversity.
14. The appointment of
two new directors provides an opportunity to improve the diversity
of thought, experience and skills of the Watercare board as a whole.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
15. Auckland
Council’s Te-Tāruke-ā-Tāwhiri: Auckland’s Climate
Plan was adopted in July 2020 and sets out the priority action areas to deliver
our goals to reduce emissions and adapt to the impacts of climate change.
16. CCOs are
responsible for delivering services to Aucklanders. Each CCO is accountable for
ensuring their planning and decisions reflect the action areas outlined in
Te-Tāruke-ā-Tāwhiri.
17. Candidates seeking
appointment need to demonstrate a commitment to integrate the action areas
outlined in Te Tāruke-ā-Tāwhiri into the CCO’s activities.
18. The skills matrix
for Watercare notes that the current board holds a good level of knowledge
regarding adaptation and mitigation of the effects of climate change including
the management of vulnerable assets and future planning.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
19. The appointment of
appropriate directors to the board of Watercare supports the good governance of
the CCO and the ability of the organisation to deliver on its objectives.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
20. Board
appointments to CCOs are the role of the Governing Body. Local boards are
encouraged to participate in the nomination process for each director vacancy.
Tauākī whakaaweawe
Māori
Māori impact statement
21. Kia ora Tāmaki
Makaurau sets as a mahi objective that: "Mana whenua and Māori are
active partners and participants at all levels of the council group's decision
making".
22. An Independent
Māori Statutory Board member is included as member of selection panels and
are represented on this committee. This ensures that a Māori perspective
is included in the setting of criteria, shortlisting, interviewing and
appointment processes.
23. According to
section 57(3) of the Local Government Act 2002, when identifying the skills,
knowledge, and experience required of directors of a CCO, the council must
consider whether knowledge of tikanga Māori may be relevant to the
governance of that CCO. Knowledge of tikanga Māori is included
within the recommended criteria for the selection of directors to Watercare.
This is in addition to the core competency that all directors have skills and
experience to uphold the principles of the Treaty of Waitangi,
readiness to promote improved outcomes for Māori and knowledge of Te Ao
Māori and with established Māori networks.
24. None
of the current Watercare directors identify as Māori.
Ngā ritenga
ā-pūtea
Financial implications
25. Costs associated
with the board appointments process are met from existing budgets.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
26. Every board
appointment carries inherent risks, including reputational concerns stemming
from the appointment of underqualified candidates and governance issues arising
from board imbalances.
27. The Policy seeks to
reduce reputational risks by prioritising candidate qualifications, skills and
experience, and through a rigorous process which includes collaborative
decisions by a selection panel and final decisions made by this committee.
Ngā koringa ā-muri
Next steps
28. The proposed
timeline for making these appointments is noted in Table 2 below.
Table 2: Proposed timeline for Watercare Services Limited
director appointments
|
Date
|
Action
|
|
2 September – 22
September 2024
|
Advertising and research
|
|
Week of 30 September
2024
|
Selection panel recommend
a short-list of candidates
|
|
22 October 2024
|
Performance and
appointments committee approve the short-list
|
|
Week of 28 October 2024
|
Selection panel interviews
candidates and makes recommendations for appointment
|
|
19 November 2024
|
Performance and
Appointments Committee consider the selection panel’s recommendations
and makes appointments.
|
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Author
|
James Stephens - Senior Advisor
|
|
Authorisers
|
Anna Bray - General Manager Group Strategy,
Transformation and Partnerships
Max Hardy - Director Group Strategy and Chief Executive
Office
Phil Wilson - Chief Executive
|