You are here:

Decision details

SIXTY BRICKS BUSINESS PLAN UPDATE, NED AND MD RECRUITMENT

Decision Maker: Shareholder Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

Shareholder Committee:

(1)          noted that the Sixty Bricks Business Plan update attached to the report complies with the forecasts agreed in the approval of the Sixty Bricks Business Plan by Shareholder Committee in June 2019 and that the plan provides a forecast of business activity up to the year 2024;

(2)          noted the business plan update for financial year 2020/21, noting that agreement of the business plan carries no financial commitment from the Council;

(3)          noted that in the case of individual schemes to be brought forward by Sixty Bricks, each scheme will be brought to Cabinet for approval to invest in individual schemes based on the strength of each business case presented. The working assumption is that Council financing will be paid for by Sixty Bricks income flows;

(4)          approved the proposed approach to remuneration of Sixty Bricks Non-Executive Directors and MD as set out in Appendix 3 to the report; and

(5)          noted the Sixty Bricks Board intent to appoint to the currently vacant Managing Director position in the future, and to fill this post on an interim basis until a refreshed Board is in place, involving the Chair of Shareholder Committee and Senior Council officers in an advisory capacity to this appointment.

 

OPTIONS & ALTERNATIVES CONSIDERED

Business Plan, NED and MD recruitment

Shareholder’s Committee has the option not to agree this business plan update as accurate. The implication of this is that Sixty Bricks would be required to resubmit a further business plan update for agreement, and potentially would not be able to implement the remaining content of the 5 year Business Plan as per the terms of the Shareholder’s Agreement and approval obtained in June 2019

Lower remuneration packages for the NED or MD positions. This has been considered, but the company would then run the risk of attracting insufficiently experienced or skilled candidates in a competitive market. The approach put forward provides the Company with the flexibility to appoint at a higher salary point should exceptional candidates come forward.

Non appointment to the Sixty Bricks MD role is not considered sustainable for the business in the long term.

Publication date: 10/10/2019

Date of decision: 10/10/2019

Decided at meeting: 10/10/2019 - Shareholder Committee

Accompanying Documents: