as key stakeholders in major companies, will now have direct
responsibility for these shareholder interests, the Cabinet Office
As a result, the Shareholder Executive will take on the government's
interests in Royal Mail, BNFL, UKAEA, Royal Mint, Partnerships UK and
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 20 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 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, 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.
* 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
* 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.