Under the Code of Practice for the Governance of State Bodies, primary responsibility for the governance and effective operation of commercial and non-commercial agencies rests with the Board. This includes responsibility for the management of the contract with the Chief Executive including any associated performance metrics.
The Code sets out distinct roles for the Board, executive management and the Minister and parent Department, creating a clear separation between governance, operational management and oversight. State bodies are established by legislation which provides for statutory independence and assigns governance responsibility to the Board.
In terms of commercial State bodies, the CEO KPIs are required to be aligned with requirements set out in the Shareholders Letter of Expectation (SLOE) which is the primary oversight mechanism between the Department and the Board. Following the “Review of Remuneration of Chief Executive Officers in Commercial State Bodies (CSBs)” by the Senior Posts Remuneration Committee, Government Departments have been requested to review the SLOEs and that process is underway in my Department.