Issue - meetings

Pursuant to the Shareholder Agreement for Tricuro, which is a Local Authority Trading Company wholly-owned by BCP Council and Dorset Council, the Executive Shareholder Group (the “ESG”) sets an annual cap on pay.  Any remuneration above that cap requires the approval of the ESG.  Tricuro wishes to appoint a permanent Managing Director and has requested that the remuneration for the Managing Director is approved at up to £120,000 per annum (i.e., in excess of the annual cap on pay set at £100,000).

RESOLVED that:-

a)    Cabinet delegates authority to the ESG members from time to time to:

i)   agree that Tricuro is permitted to set the remuneration package for the Managing Director of Tricuro to a sum of up to £120,000 per annum;

ii)  determine and approve such further details of this remuneration package as may be required; and

iii)ratify the approval of interim remuneration arrangements.

Voting: Unanimous

Portfolio Holder: Adults

Reasons

The Board of Tricuro is progressing with the process of permanent recruitment of Managing Director for the company. Having obtained Human Resources advice and information on rates paid nationally for similar posts, the Board has requested that the remuneration package for the Managing Director role is raised to up to £120,000 per annum. The Executive Shareholder Group discussed this proposal at its meeting on 14th September 2020 and agreed with the Board’s proposal in principle. This recommendation is presented to Cabinet for consideration and approval. The Tricuro Board has also approved interim remuneration arrangements and Cabinet is requested to ratify this approval.

The Portfolio Holder for Adults presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'F' to these Minutes in the Minute Book.

Cabinet were advised that Tricuro wished to appoint a permanent Managing Director and have requested that the remuneration for the Managing Director is approved at up to £120,000 per annum (i.e., in excess of the annual cap on pay set at £100,000).

In relation to this Cabinet were informed that pursuant to the Shareholder Agreement for Tricuro, which is a Local Authority Trading Company wholly-owned by BCP Council and Dorset Council, the Executive Shareholder Group (the “ESG”) sets an annual cap on pay, and that any remuneration above that cap requires the approval of the ESG. 

Further to this the Portfolio Holder advised that in relation to paragraph 6(i) of the report that since the paper had been published that there have been discussions about the most effective way to secure stability in Tricuros leadership and a reduction in cost of the interim appointment options which will now be taken forward for consideration are recruitment of a permanent managing director or appointment of a managing director on a fixed term contract on the permanent managing directors terms and conditions. The Portfolio Holder advised that both options would produce reductions in cost and that in the fixed term contract the length of the contract would be negotiated to ensure there is a sufficient period of stability for the company which is the key point here.

Councillor Diana Butler addressed the Cabinet expressing concern with regards to possible annual incremental increases. In relation to this the Portfolio Holder stressed that the previous cap had been set back in 2015 and that it was now 2020 and the cap hadn’t been raised in the years in-between previously and so it wasn’t anticipated that it would be going forwards, however this would be a matter for the ESG.

RESOLVED that:-

a)    Cabinet delegates authority to the ESG members from time to time to:

i)   agree that Tricuro is permitted to set the remuneration package for the Managing Director of Tricuro to a sum of up to £120,000 per annum;

ii)  determine and approve such further details of this remuneration package as may be required; and

iii)ratify the approval of interim remuneration arrangements.

Voting: Unanimous

Portfolio Holder: Adults