To consider the above report

Members considered a new service delivery model for the council and adoption of a new strategic leadership model comprising a Managing Director (Head of Paid Service) and two Executive Directors. The salary band for the Managing Director role was proposed as £130,000-£150,000. Market comparisons were shown in tables 6 and 7 of the report. The Managing Director would be the Head of Paid Service and the Director of Adult Social Services (DASS). The current Strategic Director of Corporate and Community Services would become the Executive Director – Place. The remaining Executive Director post would be recruited internally or externally. Members noted four proposed amendments since the structure had been discussed at Cabinet, as detailed in paragraph 2.9 of the report.

It was noted that the delay in the completion of the transfer to Achieving for Children (AfC) to 1 August 2017 was due to the corporate authority timetables of Richmond and Kingston.

In response to a question from Councillor Dudley, the Head of HR explained that the council was last restructured in January 2016 but salary bands were not looked at until July 2016. The role of Director of Adults, Children and Health was introduced at £120,000-£140,000 and an allowance of £15,000 for the role of Managing Director was approved. Therefore the current salary of the Managing Director was £140,000 (£125,000 plus £15,000). The role was currently a ‘first among equals’ post on a temporary basis to July 2017. Councillor Dudley asked if the approval of Managing Director could be sent to Full Council in June 2017 rather than March 2017, so that it was closer to the completion with AfC. It was noted that the transfer to Optalis was still due to take place on 3 April 2017. The appointment of Kevin McDaniel as Director of Children’s Services (DCS) was also planned for 3 April 2017 to ensure a seamless transition in August 2017, and was linked to the other proposed structure changes. Kevin McDaniel was due to receive an incremental increase in salary from £88,500 to £100,000. It was noted that under the legislation, the council could employ a DCS and second them to another organisation, but the DASS had to remain a local authority employee at Chief Officer level.

It was noted that the Deputy Director of Finance role reported to the Executive Director – Place, but had a dotted reporting line to the Managing Director as the S151 officer. Councillor Saunders commented that this duality was not uncommon in private sector structures.

Members requested that the structure chart, once finalised, include initials of councillors where there was more than one councillor with the same surname.

Members considered the salary band for the role of the Managing Director, noting that the actual salary would be discussed in Part II, with the decision minuted in Part I.

Councillor Jones commented that the council had changed significantly over the last few years, it would be useful to know the size of the leadership teams for the comparator authorities. It was noted that the Chief Executive role at Wokingham included £24,000 of pension contribution therefore the salary was £141,000. Reading was seeking a new Managing Director in a salary band of £135,000-£140,000. Slough was also currently recruiting with a wide salary band as it was bringing a lot of services back in-house.

Councillor Dudley commented that the Managing Director’s current salary of £140,000 included a significant piece of responsibility as the DCS. This role was moving to another employee who was receiving a £12,000 pay increase as a result. Although the council would still hold ultimate responsibility as a commissioning authority, he questioned whether the workload for the Managing Director would therefore be lighter?

The Chairman commented that the Executive Director band was £95,000 - £131,000 and if both were at the lower end this would be a substantive difference to the proposed Managing Director role. It was noted that the Strategic Director of Corporate and Community Services salary was currently £105,000. The Interim Strategic Director for Operations and Customer Services salary was £99,000. The head of HR commented that the borough was the first authority looking to put adult social services into such an organisation. There may initially be more complexity due to the number of partners involved. It was confirmed that the role of Returning Officer was a separate appointment for which there was a specific allowance, paid for by central government and based on elections held.

It was noted that the term ‘redesigned’ used in reference to the role of Head of Commissioning was used to show the increased scope and responsibility. This was also the case for the role of Head of Communities and Highways.

Councillor Saunders  commented that the current senior leadership structure was a lean pyramid. The situation could arise where the two directors were very capable and therefore the Managing Director role would be easier, therefore he suggested the salary band should start lower than £130,000. The Head of HR commented that, looking at the comparators, £130,000 was the minimum with the exception of Poole and was within market rates; it had been chosen to attract the right calibre of individual.

Councillor Jones reported that the senior leadership teams for other Berkshire authorities were as follows:

Bracknell Forest – CEO plus 4

Reading – CEO plus 4

Wokingham – CEO plus 4

Slough – CEO plus 6

West Berkshire- CEO plus 2 and a plethora of heads of service

Councillor Dudley commented that he agreed with Councillor Saunders that the band could start lower than £130,000. He would also be extremely uncomfortable if the upper level of the band was near to what the Prime Minister earned.

Councillor Jones commented that she did not want the council to tie its hands by setting a band that was unrealistic in terms of attracting a good quality candidate in future. It was noted that bands could be discussed and changed in future if necessary.

It was noted that, in the proposed structure, a number of manager posts reported directly to the Managing Director. These posts were below head of service level and did not form part of the senior leadership team.

Members discussed a number of options for the Managing Director salary band and concluded it should be £120,000-£145,000 following a named vote.

Members discussed the salary level for the Managing Director for recommendation to Full council in Part II, and agreed that the decision should be minuted in Part I.

RESOLVED: That Employment Panel notes the report and approves:

          i)       The adoption of the strategic leadership model comprising a Managing Director (Head of Paid Service) and two Executive Directors, effective April 2017.      

          ii)      The appointment of Alison Alexander as permanent Managing Director and recommends the appointment to full Council, on 30 March 2017.

          iii)     The Managing Director salary band of £120,000 to £145,000.

iv)     The re-designation of Russell O’Keefe’s post to Executive Director with responsibility for finance, revenues and benefits, planning, regeneration, ICT and property and commercial service companies.

          v)      The delegation of the recruitment to the post of Executive Director, within the Director pay band, with responsibility for libraries and resident services; community protection and enforcement, and communities and highways, to the Managing Director, Head of HR, Lead Member(s) and Chair of Employment Panel.

          vi)     The redesign of two posts:

·      Head of Commissioning – Adult, Children and Health to become Deputy Director Strategy and Commissioning (Hilary Hall)

·      Head of Strategy and Communities to become Head of Communities and Highways (David Scott).

          vii)    The job accountabilities for the new roles of Managing Director and Executive Director.

viii) The salary for the Managing Director be recommended to Full Council as £137,000.

(Members voted unanimously on all resolutions above other than resolution iii. For resolution iii, five councillors voted in favour of the motion - Councillors Targowska, Saunders, Dr Evans, Bicknell and Jones. Two councillors voted against the motion – Councillors Dudley and Quick.)