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Shareholder
Executive
HM Government Commercial — In Confidence
Minutes of Shareholder Executive Board
Wednesday 11 July 2012 at 15.00
Members _ Patrick O’Sullivan (Chair) (PO’S) Attendees: Roger Lowe (Item 6) (RL)
present: Claudia Arney (CA)
Lord Carter (LC)
Gerry Grimstone (GG)
Jeremy Pocklington (JP)
Tony Watson (TW) Secretary: Peter Batten
Stephen Lovegrove (SL)
Anthony Odgers (AO)
1. Apologies for absence, Chair’s welcome and introduction, minutes
from last meeting, declarations of interest
1.1. The minutes of the previous meeting were discussed. PO’S noted an
additional action from the previous meeting, TW observed that the
Board NEDs had met following the May Board meeting, and that there
were no matters arising.
1.2. There was a brief discussion about the impact of the recent Libor rate-
fixing scandal. It was felt that there may be an expectation for ShEx to
become more involved. SL noted that ShEx resource, particularly
those with corporate finance expertise, could be reallocated ina
supportive capacity to HMT if required.
1.3. JP and TW voiced concern over the impact that low growth could have
on ShEx businesses. However, GG suggested that the market may
be prepared to pay a premium for low volatility assets, such as ShEx
businesses.
2. Chief Executive’s Report
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2.3!
IRRELEVANT
2.5)
2.
~
2.6:
. Government Lead NEDs Annual Report
_ IRRELEVANT
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5. Public Data Grou
5.5;
IRRELEVANT
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. Royal Mail
6.1.
6.2.
6.3.
RL joined the meeting, noting key developments including end year
results that showed the business had performed ahead of budget. RL
explained that this was largely due to a slower decline in volume levels
than forecast. RL also noted that the business had largely completed
the modernisation of its sorting offices, with efficiencies being
achieved through greater automation.
RL noted that ShEx had received the company’s revised business plan
and was seeking clarity over the figures and whether the plan was
stretching enough, particularly in meeting targets to modernise the
delivery office network. Discussing pensions, RL noted that the
transition and subsequent asset realisation had been executed very
professionally.
The Board noted that the Royal Mail Chairman had recently been
appointed Chairman of Sage. [action] The Board expressed its desire
for SL to discuss the importance of taking the business through its
continued modernisation, and preparations for a sale with the
Chairman, and to rationalise his Chair portfolio.
. Any other business
71
.Board members noted the Chairman’s recent letter to SoS on ShEx
businesses remuneration processes, commenting on its sensible
purpose but questioning whether it would be politically palatable. SL
explained that the purpose was to secure a mandate to further explore
options.
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8. Actions
Completed actions
Agend I Action point Action Due Status
a Item officer date
Outstanding actions
Due I Status
date
Agend I Action point Action
altem
officer
3.2
= IRRELEVANT
6.3
ShEx Board Secretary