Good college governance: consultation

Section 2 - Good Governance Task Group Recommendation 1: better arrangements are put in place to improve board member recruitment

Remuneration of Assigned College Chairs

Recommendation 1(b) of Task Group report

Scottish Ministers will consult on

i) whether assigned college chairs should be remunerated

QUESTION 1: Should the Scottish Ministers have powers to determine a rate of remuneration for the chairs of assigned, incorporated colleges?

2.1 Regional college chairs are remunerated, however, the chairs of assigned colleges are not. This results in the chairs of some of Scotland's largest colleges not being remunerated. The time commitment required of all college chairs are significant. There are twenty incorporated colleges, of which eleven are regional colleges.

2.2 Legislation provides that the Scottish Ministers set the rate of remuneration ^[5] of regional college chairs, the terms and conditions of appointment of regional college chairs ^[6] and the maximum number of days to be paid (up to two days per week). There are three daily rates ^[7] for regional chairs depending on the size of the college. If the legislation were to be amended in relation to remuneration of assigned college chairs, Scottish Government would separately determine the relevant daily rate for assigned college chairs. The maximum time commitment to be remunerated would be for the relevant regional strategic body to determine, as this would be a matter set out in the terms of appointment determined by the regional strategic body ^[8] .

2.3 This change would apply to incorporated colleges - those colleges that are governed by college legislation ( i.e. the 1992 Act).

Financial Assumptions

2.4 Assuming all nine assigned colleges had the middle daily rate (£265) and a maximum weekly time commitment of up to 1.5 days per week overall, the cost of this would be 52x1.5x265 = £20,670 per college, i.e. £186,030 in total. Like the other institutions, the costs of remunerating the chair would be borne by the institution.

Trade Union Nominees on Incorporated College Boards

Recommendation 1(b) of Task Group report

Scottish Ministers will consult on

ii) whether trade union nominees should join incorporated college boards and the future of elected staff members

QUESTION 2: Should legislation require two trade union nominees from recognised main unions for (1) teaching and (2) non-teaching staff to be members of a board of an incorporated college and Regional Board?

QUESTION 3: If so, should the nominees (1) be in addition to elected staff members (without any change to student member numbers); (2) be in addition to elected staff members (with an increase in student member numbers); or (3) replace elected staff members.

2.5 Since the incorporation of colleges in April 1993, incorporated college boards have been required to include a teaching staff member elected by teaching staff and a non-teaching staff member elected by non-teaching staff. This in contrast to recent legislation ^[9] , which will at the latest from 2020, require the governing body of a higher education institution to include

a) two elected staff members;
b) one staff member nominated by the main recognised academic staff union; and
c) one staff member nominated by the main recognised support staff union.

2.6 Requiring two trade union nominees to join college boards would mean the minimum size of a board minimum must increase. At present, a regional college board must between 15-18 members ^[10] and an incorporated assigned college board must have between 13-18 members ^[11] . The provisions ensure that the chair and non-executives always form a majority of the members of a board ^[12] . Simply adding two trade union nominees would breach this. It could also mean half or more of members receive remuneration from the board ^[13] , which would be an issue given incorporated colleges are charities.

2.7 At present there generally is parity in the number of staff members (two) and student members (two). Requiring two further staff members nominated by trade unions would remove this parity.

2.8 One way to avoid increasing the size of the board would be to replace the elected staff members by trade union nominees.

2.9 As members of a college board (and, as such, as charity trustees), any trade union representative (as with all other members of a college board ) would be required to act in the best interests of the college, as opposed to any individual constituency which nominated or elected them. However, there would be a role for such a representative to be the staff voice in decision-making.

2.10 Another are to consider is the impact any change would have on the board of New College Lanarkshire ( NCL). The Lanarkshire Colleges Order 2014 ^[14] provides that the NCL board has 19-22 members. This due to the NCL board having four staff members (2 NCL staff members and 2 South Lanarkshire College Board staff members). . Having teaching and non-teaching staff from both colleges would mean an additional four trade union nominees.

Options	Board size - Regional	Board size - Assigned [15]	Board size - New College Lanarkshire
1. No change	15-18	13-18	19-22
2. Two trade union nominees in addition to elected staff members	17-20	17-20	25-28 [16] [if 4 TU nominees]
3. Two additional trade union nominees and total of four student members	21-24	21-24	29-32 [if 4 TU nominees]
4. Two trade union nominees to replace two elected staff members	15-18	13-18	19-22

2.11 The composition of the membership of a Regional Board ^[17] is similar to that of a regional college in that it requires two elected staff members (elected by relevant staff from assigned colleges). The Scottish Government would seek to mirror the spirit of any relevant changes to college legislation in the legislation for Regional Boards.

Ministers' powers to issue guidance on appointments

2.12 Ministers have powers under paragraph 3C(1) of Schedule 2 to the 1992 Act to issue guidance, following consultation, to regional college boards and regional strategic bodies in relation to appointments to regional college boards and assigned incorporated college boards.

2.13 Regional college boards and regional strategic bodies must have regard to such guidance when appointing or extending the appointment of board members.

2.14 Ministers also have powers under paragraph 3(6) of schedule 2B to the 2005 Act to issue guidance, following consultation, to Regional Boards in relation to appointments to those boards. Regional Boards must have regard to such guidance when appointing non-executive board members or extending the appointment of board members.

2.15 Following consultation, we issued Ministerial guidance in August 2014 to underpin a new transparent appointment system to:

a) enhance public accountability;
b) have boards that are properly equipped to perform the role asked of them to achieve positive outcomes;
c) encourage participation from a wide and representative group of individuals; and
d) generate greater confidence in college governance arrangements.

2.16 The Task Group included two recommendations for Ministers to consult on amending the appointments guidance. The recommendations relate to consulting on provision in the guidance for highly regarded candidates for which there is no immediate position as well as for encouragement of the recruitment of board members with demonstrable ability to work well as a team.

2.17 Like the guidance issued in August 2014, any amended guidance following this consultation would be issued under paragraph 3C(1) of Schedule 2 to the 1992 Act and paragraph 3(6) of schedule 2B to the 2005 Actby the Scottish Ministers to:

• regional college boards in relation to the appointment of non-executive board members to those boards;
• Regional Boards ^[18] in relation to the appointment of non-executive board members to those boards; and
• regional strategic bodies in relation to the appointment of the chair and non-executive board members of assigned incorporated college boards.

Highly regarded candidates for which there is no immediate position as a non-executive board member

Recommendation 1(b) of Task Group report

Scottish Ministers will consult on

iii) amending appointments guidance to make provision for highly regarded candidates for which there is no immediate position

QUESTION 4: Should provision be made for highly regarded candidates for which there is no immediate position to be appointed without further open recruitment, along the lines proposed?

2.18 It has been put to us that the guidance should be more flexible by recognising that an open recruitment process may identify otherwise suitable candidates for which there is no immediate position. And that there should be a mechanism by which they can join a board without necessarily going through a further open recruitment process for non-executive board members. In line with the recommendation of the Task Group, we propose the following addition to the Ministerial guidance to facilitate this.

Regional College Boards

2.19 After paragraph 3.26, insert the following:

'Highly regarded candidates for which there is no immediate position'

3.26A A regional college board may decide not to follow the open recruitment process outlined in paragraph 3.25 if there is a suitable person able to be appointed who has been identified by the board as a highly regarded candidate within the previous 12 months.

3.26B A highly regarded candidate may be identified by the board following an open recruitment process outlined in paragraph 3.25 as a result of:

• a particularly strong pool of candidates to fill too few vacancies; or
• their skills, experience etc. not matching the particular needs of a vacancy, but the board envisage that the candidate would be well suited to another vacancy potentially arising within 12 months.

3.26C If a person is so identified, they should be informed that any potential future appointment for which they are suited would still require to be made by the board with the approval of its chair and the Scottish Ministers. The college must also avoid suggesting that the board is fettering its ability to follow an open recruitment process for any future vacancy. This is something the board may still want to do, having considered, for example, equality issues.

3.26D The relevant committee should consider:

a) the suitability of a highly regarded candidate for any particular vacancy;
b) any equality issues that might arise from their appointment; and
c) whether in the circumstances it would be appropriate to recommend to the board their appointment without a further open recruitment process.

3.26E If the board and its chair judge that the person is suitable and want Scottish Ministers to approve such an appointment, Ministers require information set out in paragraph 3.39. Also, the independent person involved in the open recruitment process that identified the person as a highly regarded candidate, should provide the statement outlined in paragraph 3.40. Such a request is not exceptional and therefore does not require the prior notice outlined in paragraph 3.41.

Regional Boards

2.20 After paragraph 4.26, insert the following:

'Highly regarded candidates for which there is no immediate position'

4.26A A Regional Board may decide not to follow the open recruitment process outlined in paragraph 4.25 if there is a suitable person able to be appointed who has been identified by the board as a highly regarded candidate within the previous 12 months.

4.26B A highly regarded candidate may be identified by the Regional Board following an open recruitment process outlined in paragraph 4.25 as a result of:

• a particularly strong pool of candidates to fill too few vacancies; or
• their skills, experience etc. not matching the particular needs of a vacancy, but the board envisage that the candidate would be well suited to another vacancy potentially arising within 12 months.

4.26C If a person is so identified, they should be informed that any potential future appointment for which they are suited would still require to be made by the board with the approval of its chair and Scottish Ministers. The Regional Board must also avoid suggesting that the board is fettering its ability to follow an open recruitment process for any future vacancy. This is something the board may still want to do, having considered, for example, equality issues.

4.26D The relevant committee of the Regional Board should consider:

a) the suitability of a highly regarded candidate for any particular vacancy;
b) any equality issues that might arise from their appointment; and
c) whether in the circumstances it would be appropriate to recommend to the board their appointment without a further open recruitment process.

4.26E If the Regional Board and its chair judge that the person is suitable and want Scottish Ministers to approve such an appointment, the independent person involved in the open recruitment process that identified the person as a highly regarded candidate, should provide the statement outlined in paragraph 4.36. Such a request is not exceptional and therefore does not require the prior notice outlined in paragraph 4.37.

Assigned Incorporated College Boards

2.21 After paragraph 5.27, insert the following:

'Highly regarded candidates for which there is no immediate position'

5.27A A regional strategic body may decide not to follow the open recruitment process outlined in paragraph 5.26 if there is a suitable person able to be appointed as a non-executive member who has been identified by the regional strategic body as a highly regarded candidate within the previous 12 months.

5.27B A highly regarded candidate may be identified by the regional strategic body following an open recruitment process outlined in paragraph 5.26 as a result of:

• a particularly strong pool of candidates to fill too few vacancies; or
• their skills, experience etc. not matching the particular needs of a vacancy, but the regional strategic body envisage that the candidate would be well suited to another vacancy potentially arising within 12 months.

5.27C If a person is so identified, they should be informed that any potential future appointment for which they are suited would still require to be made by the regional strategic body. The regional strategic body must also avoid suggesting that it is fettering its ability to follow an open recruitment process for any future vacancy. This is something the regional strategic body may still want to do, having considered, for example, equality issues.

5.27D The relevant committee should consider:

a) the suitability of a highly regarded candidate for any particular vacancy;
b) any equality issues that might arise from their appointment; and
c) whether in the circumstances it would be appropriate to recommend to the regional strategic body their appointment without a further open recruitment process."

Recruitment of board members with demonstrable ability to work well as a team

Recommendation 1(b) of Task Group report

Scottish Ministers will consult on

iii) amending appointments guidance to make provision …. to encourage the recruitment of board members with demonstrable ability to work well as a team.

QUESTION 5 Should provision be made in relation to a proven ability to work well as a team?

Regional College Boards/Regional Boards/Assigned Incorporated Boards

Proposed Changes to Appointments Guidance

2.22 Insert before each subparagraph 3) in paragraph 3.20, paragraph 4.18 and paragraph 5.24:

'2A) has proven an ability to work well as a team.

And'

Regional Boards: appointment of assigned incorporated college chair

Insert a new subparagraph after 5.22(3)(b):

'(aa) an ability to work well as a team;'.

Advertising

Recommendation 1 (a)(ii) of Task Group report

Appointing bodies should advertise all board vacancies on CDN website (this may encourage more from college sector to consider applying).

QUESTION 6 Should appointing bodies advertise all board vacancies on CDN website?

2.23 It has also separately been put to us that it would be desirable for the guidance to include a minimum period for advertising positions to ensure such advertising was meaningful by giving sufficient time for people to put in an application.

Regional College Boards/Regional Boards/Assigned Incorporated College Boards

2.24 In paragraph 3.25(3) and paragraph 4.25(3) and paragraph 5.26(4) at end of each paragraph add

'and the College Development Network website. The closing date for applications should be at least two weeks from the date of advertising.'

and include a footnote after 'College Development Network website' http://www.scotlandscolleges.ac.uk/about-us/about-college-development-network/college-sector-vacancies/" the chair)."