Public sector to split governance roles
Last Friday's amendments to the Enterprise Bill are expected to spark a government drive across UK public bodies to split the roles of chief executive and chairman.
Link: Hewitt ushers in Enterprise Bill
The government has already agreed to split the director general role at the Office of Fair Trading when current chairman Sir Howard Davies steps down in 2004. At that time, current director general John Vickers will see his role split into two separate positions shortly before his contact expires in 2005.
Lord Hunt of Wirral’s crucial amendments to the Bill force equal governance standards for both private and public bodies by demanding split roles for chief executive and chairman.
Other public bodies are expected to follow the OFT’s plans to split their director general role, including the Financial Services Authority, energy regulator Ofgem and new communication regulator Ofcom.
The amendments to the Enterprise Bill has been a victory for a cross-party group of peers, led by Lord Hunt. ‘In managing its affairs the OFT must have regard to the generally accepted principles of good corporate governance,’ Hunt told his peers.