Recommendation 3

The Cabinet Office does not publish transparent information about NEDs, the diversity of panels who select them, or the requirements for independence in these roles. The Cabinet Office publishes an annual report on regulated public appointments, of which there were 4,476 in post as of March 2022. However, this report does not break the data down by role so we do not know how many of those appointments are NEDs as opposed to other types of public appointment. Furthermore, the Cabinet Office does not collect or publish any data on either unregulated public appointments (an unknown number of which are NEDs) or about those who serve on Advisory Assessment Panels (which interview applicants and produce a list of appointable candidates, such as their diversity characteristics). Advisory Assessment Panels are required to include independent panel members, with some “significant appointments” requiring a “senior independent panel member”. The Cabinet Office has not set out what determines a suitable level of political independence for NEDs, independent members, or senior independent panel members. It says that around 3% of all regulated appointments have declared a political interest, but it relies on self-declaration by candidates of, for example, conflicts of interest or donations to political parties. Recommendation 3: The Cabinet Office should: a) Include data in its annual public appointments data report about numbers and diversity of: Ȥ non-executive directors specifically; and Ȥ unregulated public appointments. b) Centrally collect data about those who serve on Advisory Assessment Panels, including diversity data, and publish the aggregate data at least annually. c) Set out clearly the standards of independence expected of non-executive directors, independent panel members, and senior independent panel members, including what matters must be registered.