UKGI00008918 - Briefing Note re: Annual Letter to the Post Office Chair - sent to Permanent Secretary

Evidence on official site

UKGI00008918
UKGI00008918

ue oe
Department for

Business, Energy
Reewoverniment & Industrial Strategy

Date: [18] January 2018
Director General: Mark Russell

Recipient To Note / Comment To Approve / Decide
Permanent Secretary xX

Annual letter to the Post Office Chair

Summary

1) Adraft Chair's letter to Tim Parker clarifying the shareholder priorities for 2019/20.
Timing

2) Routine. Ideally by Friday 25 January 2019, so that we can send the letter in
January 2019.

Recommendation

3) That you approve the draft Chair letter and agree to meet with the Chair to
discuss.

Background

4) Tim Parker was appointed as Chair in October 2015, and was reappointed in
October 2018 for a further four years. He has increased the focus on commercial
aspects of the business and POL has delivered two successive years of profit after
more than a decade of losses. The latest management accounts suggest that it is
on course to exceed its stretch target in 2018/19.

2

POL’s last Chair Letter was sent in December 2017 and we do not advise waiting
until the new CEO is in place to send a new one, as this may not be until Autumn
2019. The letter highlights areas where we believe there is greatest scope for the
Chair to add value. These relate to:

e Commercial strategy, where POL faces fundamental challenges and
opportunities across all its main business areas

e The interaction with government policy, where there is currently an elevated
level of political interest in Post Office as well as the upcoming Spending
Review

e Corporate governance, where despite recent improvements, there are some
gaps in best practice relating to Board development and diversity

Next steps
UKGI00008918
UKGI00008918

ue oe
Department for

Business, Energy
Reewoverniment & Industrial Strategy

6) We have proposed in the letter that POL’s Chair and senior management have a
formal shareholder meeting with BEIS and UKGI every six months, in keeping with
other partner organisations. We think it would add a lot of value if you were able to
attend these meetings, or every other one, and will provide further advice when
they are due.

7) If you are content with the contents of the letter, we recommend that you meet with
the Chair shortly after it is sent.

Do you agree to send the Chair’s letter and to meet with Tim Parker to discuss?