United Kingdom - Shareholder Executive (ShE)
The Shareholder Executive was created in September 2003. It was charged to work with shareholder departments and business management teams to improve fundamentally the execution of the government's role as an owner of business.
Government businesses are owned by a number of different government departments, and ministerial responsibility rests with the respective shareholding department. The Shareholder Executive has moved from operating solely as an advisor to existing shareholding teams across government, to being responsible for managing the shareholder relationship and advising ministers directly on over 80% of the portfolio by turnover.
ShE's role
The Shareholder Executive's mission is:
To ensure that the government's shareholdings deliver sustained, positive returns and return their cost of capital over time within the policy, regulatory and customer parameters set by government, by acting as an effective and intelligent shareholder.
To provide a source of corporate finance expertise within government.
Where it has executive responsibilities, the Shareholder Executive is responsible to each respective shareholding minister and permanent secretary. The Chair, Richard Gillingwater, is accountable to the Cabinet Secretary for the overall achievement of the Shareholder Executive's mission.
The Shareholder Executive has published high-level shareholding principles, which state that there should be:
Clarity and transparency of objectives for the business, and a precise articulation of the trade-offs between policy, regulatory, customer and financial interests.
A shared vision for the business based on objectives explicitly agreed by the shareholder, board and management team.
An engaged and informed shareholder, actively exercising its key levers of power and influence on: governance frameworks, board appointments, strategy and incentivisation, supported by performance monitoring.
An incentive framework that links reward explicitly to long term value generation as well as performance against wider business objectives.
Size
The Shareholder Executive has an annual budget of £5m and employs approximately 50 staff. The team is drawn from the private and public sectors, with backgrounds in investment management, corporate development, private equity, corporate finance and accountancy, together with government policy and delivery skills.
Portfolio of businesses
All businesses are wholly owned by the government unless otherwise stated.
|
ABRO |
ABRO is a defence engineering business that primarily provides repair, re-manufacture and engineering of land-based equipment in support of the UK Armed Forces, and is incrementally beginning to provide such services to a wider range of defence and civilian customers. |
|
Actis llp |
Actis contributes to the alleviation of poverty in poorer developing countries by promoting and managing private equity funds in the developing world. Its principal activity is fund management on behalf of third-party investors, the largest of which is CDC Group plc (another business in the Shareholder Executive portfolio). Actis also mobilises private and other third-party investment capital for investment in developing countries, especially the poorest. Actis is a limited liability partnership, 60% owned by its partners and an employee share trust, and 40% owned by the Secretary of State for International Development. |
|
British Energy Group plc |
British Energy's principal activities are the generation, sale and trading of electricity. It owns and operates eight nuclear and one coal-fired power station in the UK. British Energy is a listed plc, wholly owned by its shareholders. The government does not own any shares, other than special shares giving certain administrative rights exercisable only on the grounds of national security. However, following British Energy's solvent restructuring, the government has a significant financial interest in the company having underwritten its liabilities and taken offsetting investments in its business. |
|
British Nuclear Fuels plc |
BNFL is a nuclear business with four principal activities: nuclear decommissioning and clean up undertaken by British Nuclear Group; fuel manufacture and nuclear reactor services and design undertaken by Westinghouse; research and development (Nexia Solutions); and uranium enrichment (33% stake in Urenco). |
|
British Waterways |
British Waterways exists to manage, maintain and develop its network of waterways and docks for the wider public benefit. The maintenance of the canal network for safe use and enjoyment is a net cost to the business. This is partly defrayed by commercial activities, mainly property generation along the waterways. |
|
CDC Group plc |
CDC invests its capital in order to maximise the creation and long-term growth of viable businesses in poorer developing countries through responsible investment and mobilising private finance. |
|
Channel 4 |
Channel 4 broadcasts its core free-to-air channel, Channel 4, across the UK and also a number of digital TV channels: E4, More4 and Film4. Channel 4 exists to fulfil a public service broadcasting remit, providing a range of innovative, creative and distinctive programming to cater for a diverse society. Channel 4 is a statutory corporation without shareholders. |
|
Covent Garden Market Authority |
CGMA is responsible for the management of New Covent Garden Market, London's primary wholesale market for fruit, vegetables and flowers. |
|
DARA |
DARA provides deep-level maintenance, repair and overhaul services for military aircraft, systems and components. The Ministry of Defence accounts for the vast majority of DARA's revenue. |
|
Defence Science and Technology Laboratory |
The Defence Science and Technology Laboratory's core role is to provide independent and objective, high quality scientific, analytical, technological and engineering advice and services to the Ministry of Defence and UK Armed Forces. It only carries out work which must be done in government. Its mission is to create the winning edge for UK Forces and government through the best use of science and technology. |
|
Export Credits Guarantee Department |
ECGD underwrites finance products to support the sale of UK capital goods (such as aircraft and machinery), and services and to help UK companies take part in overseas projects such as hospitals, airports and power stations. ECGD's products supplement the private sector by offering cover on long term risks that the private sector is unable to bear. |
|
Fire Service College |
The Fire Service College provides facilities for both practical and theoretical fire fighting, fire safety and accident emergency training. A wide variety of incident scenarios can be simulated on its training ground |
|
The Forensic Science Service Limited |
The Forensic Science Service is the largest provider of forensic science services within the UK Criminal Justice System. Its services include both testing (in which discrete pieces of scientific analysis are performed) and casework (which generally involves a combination of testing and judgement). The majority of FSS's business stems from a broad range of crime including drugs-related offences, with the English and Welsh police forces its principal customers. |
|
Met Office |
The Met Office is the official national meteorological service for the UK. It provides varied environmental and weather-related services to a range of public and commercial customers in the UK and around the world. The Met Office is a world-leading centre for the science of climate change and numerical weather prediction. |
|
NATS |
NATS provides air traffic services in UK and Oceanic airspace and at 15 major UK airports and Gibraltar, as well as related consultancy and training services in Europe and beyond. NATS is a public private partnership. The Airline Group has the majority of voting rights and 41.9% of the shares. The Secretary of State for Transport owns 48.9% of the shares, BAA plc 4.2% and the NATS Employee Sharetrust Ltd the remaining 5%. |
|
Ordnance Survey |
Ordnance Survey provides detailed geographic data for business and leisure: from complex digital information to traditional walking and road maps for Great Britain. Ordnance Survey's data underpins a range of private and public sector services, including central and local government, insurance, mobile location services, land and property, retail, housing, transport, utilities and the emergency services. |
|
PartnershipsUK plc |
PartnershipsUK's mission is to assist governments (at national and local levels) and public bodies in accelerating the development, procurement, financing and implementation of Public Private Partnerships. Partnership's UK is itself a PPP, jointly owned by the public and private sectors. |
|
QEII Conference Centre |
The QEII Conference Centre is one of London's leading conference venues, located in Westminster. Approximately 75% of its business is now derived from private sector activity, with around 400 events held each year. |
|
QinetiQ Group Plc |
QinetiQ is an international defence and security company that develops cutting-edge technology for the UK's Armed Forces and provides technological advice and services to the Ministry of Defence, other government departments, the US Department of Defense, and non-government customers. QinetiQ is listed on the London Stock Exchange, with the Secretary of State for Defence holding a 19.3% stake. |
|
Royal Mail Holdings plc |
Royal Mail is the leading postal service operator in the UK, providing national and international distribution of mail and parcels. It operates under a domestic postal licence from the UK postal regulator, Postcomm. In addition to its mails business, its other operating units are: Post Office Limited, which provides government, financial and retail services through its network of 14,400 Post Office® branches; Parcelforce Worldwide, its domestic and international express parcels business; and General Logistics Systems, a European parcels business active in 34 countries. |
|
Royal Mint |
The Royal Mint's principal activity is the manufacture and issue of UK circulating coin. The Royal Mint also manufactures circulating coins and blanks for overseas countries and produces collector coins. |
|
Scottish Water |
Scottish Water is responsible for providing water and wastewater services to business and householders across Scotland. |
|
Tote |
The Tote is one of the principal betting organisations in Britain with over 450 shops, presence on each of the 59 racecourses in Britain, as well as internet and telephone betting facilities. The Tote is a statutory corporation. |
|
UK Atomic Energy Authority |
UKAEA was created to research and develop nuclear power. Today it still leads the UK effort on nuclear fusion R&D and hosts Europe's fusion R&D facility, JET. However, its main role has changed to decommissioning and, where appropriate, regenerating its five nuclear sites and applying its expertise to nuclear clean-up in competitive markets emerging both in the UK and overseas. |
|
UK Hydrographic Office |
The UKHO exists to help preserve life and safety at sea. It has a world-class reputation for providing safe and accurate navigational information. This is essential to support the operations of the Royal Navy and other mariners around the world. The UKHO also plays a central role in discharging the UK's treaty obligations to provide hydrographic services for waters of UK national responsibility, as required under international convention. |
|
Water Service |
The Water Service provides water and sewerage services to over 730,000 domestic, agricultural, commercial and business customers in Northern Ireland. |
|
Working Links (Employment) Ltd |
Working links operates nationally, bidding for and managing regional contracts for JobCentre Plus and other government departments and agencies to work with long-term unemployed and disadvantaged people, with the aim of enabling them to obtain and sustain employment. Working Links is a public-private-voluntary partnership. The Secretary of State for Work and Pensions and Mission Australia each own one-third of the Share capital, with Manpower plc and CapGemini UK plc holding a sixth each. |
Further details on the Shareholder Executive and its portfolio of businesses are available in its Annual Report at Shareholder Executive.
