A review was recently undertaken into the requirements applying to the appointment of Chief Executive Officers and Full-Time Statutory Appointees. The revised requirements are set out on the attachment to this Memorandum.

The major charge is that a number of positions which perform deputy or other assistant roles to Chief Executive Officers no longer need be submitted to Cabinet. This means that in future these positions will be treated in the same way as deputies and other senior executives in public service departments which have never been matters for Cabinet consideration.

The revised procedures still incorporate the following principles:

1. Chief Executive and certain other appointments which a Minister may approve, or which he/she recommends to the Governor-in-Council will continue to be submitted to Cabinet for approval, prior to the appointment being made. A listing of all those positions is provided.
2. The processes of advertising, interviewing and selecting are to be based on independent advice to assist in arriving at an appropriate collective decision of Cabinet on the choice of the best candidate.
3. The responsible Minister will oversee the procedures, and the Premier's Department will perform a co-ordinating role where the appointee is the Chief Executive Officer.
4. The Director-General, Premier's Department will be responsible for ensuring that questions of remuneration packages and severance payments are appropriately determined in each case.
5. Ministers are to consult the Premier, or Director-General, Premier's Department prior to taking action in each individual case of Chief Executive placement or the remuneration/severance payment for all Chief Executive Officers and full-time Statutory appointees.

John Fahey MP
Premier

Date: 11 August 1992
Branch: Director-General's Unit
Contact Officer: Les Quinnell (02) 228 5982

PROCEDURES FOR APPOINTMENT AND TERMINATION OF CHIEF EXECUTIVE OFFICERS AND FULL-TIME STATUTORY APPOINTMENTS

The following procedures are to apply in respect of the recruitment, appointment and termination of Chief Executive Officers and Full-Time Statutory appointees (as set out in the attached schedule).

1. Chief Executive Officers and the nominated full-time Statutory appointments which a Minister may approve, or which he/she recommends to the Governor-in-Council, will continue to be submitted to Cabinet for approval, prior to the appointment being made.

2. New position and vacancies are to be advertised in the press, except in very exceptional circumstances which are to be explained in the Cabinet Minutes.

3. Unless there are compelling reasons, advertising action should be initiated:

• as soon as possible after an incumbents resignation or departure is known,
• at least three months before an incumbents term of office expires, in those cases where the Minister or the incumbent has decided in terms of Clauses 4 & 5 of the standard CEO's Contract of Employment not to renew the appointment for a further term.

or consent obtained from the Premier to fill the position as an exception without advertising. Ministers will be responsible for arranging the advertising, and are to consult the Director-General, Premier's Department on the wording and placement of advertisements.

4. In performing a co-ordinating role for Chief Executive Officer positions, the Director-General will assist the responsible Minister by reviewing the selection criteria and advising on the composition of the advisory selection panel, including choice of a Convenor.

5. As a general rule each advisory selection panel is to include a woman and representation from outside the Department/Authority, and one person from the private sector.

6. The deliberations of the panel dealing with Chief Executive Officer positions should be conveyed to the responsible Minister by the Convenor of the panel. It is anticipated the panel may furnish a short list of suitable candidates for the Minister's consideration and recommendation for Cabinet's consideration.

7. Cabinet's formal approval must be obtained prior to any appointment being made by a Minister or Governor-in-Council.

8. Where a Minister favours a CEO's re-appointment for a further term, the Minister should obtain Cabinet's formal endorsement prior to discussing reappointment with the incumbent (in terms with Clauses 4 & 5 of the standard Contract of Employment). If the Minister and the incumbent agree to re-appointment for a further term, a further reference to Cabinet is not necessary in these cases.

9. Where the appointment needs to be submitted to the Governor-in-Council, no announcement of the appointment is to be made until the approval of the Governor-in-Council is obtained.

10. Unless there are special circumstances, eg sudden resignation or departure from office, recommendations are to be submitted to Cabinet one month in advance of the date on which an office is to be vacated, in order that there is adequate time to consider the proposed appointment.

11. Cabinet Minutes are to include:

• details of the qualifications and experience required in the position;
• the particulars of those persons placed on a short list for interview and the conclusions of the advisory selection panel;
• a separate statement attached to the Minute giving full details of the recommended appointee, including date of birth, qualifications and experience;
• an attachment containing a full list of all applicants, their qualifications and employment details etc;
• the total remuneration payable for the appointment/position.

12. In the case of boards or commissions comprising more than one member, reference should be made to any special area for which the appointee is to be responsible. In such cases, an indication should be given of ways in which the proposed appointee's qualifications and experience complement that of the other members and meet the requirements of his/her appointment.

13. Persons proposed to be appointed or re-appointed to Chief Executive Officer or full-time Statutory positions need not undergo a medical examination prior to appointment, unless desired by the Minister or if it is required for superannuation entitlement which is automatically available on appointment. Any examination is to be arranged by the responsible Minister. Where a medical is to be arranged, reference to that fact should be included in the Cabinet Minute and the certificate should accompany the Executive Council Minute.

14. Now that the Public Sector Management Act has been amended to no longer require retirement at a specified age, appointments can be made based entirely on merit, and the age of the recommended person is that a relevant factor in the decision making process.

TERMINATIONS

Where a Minister decides that it is desirable to remove a Chief Executive Officer or the holder of one of the nominated full-time statutory positions from his/her position, the circumstances are to be brought to the attention of the Premier before any action is initiated. Following consultation with the Minister, the Director-General of the Premier's Department will arrange for any appropriate action regarding public sector re-deployment or compensation to be initiated.

LIST OF FULL-TIME STATUTORY APPOINTEES REQUIRING CABINET APPROVAL

1. Chief Executives of Departments in Schedule 1 to the Public Sector Management Act

2. Chief Executives of Administrative Offices in Schedule 2 to the Public Sector Management Act

3. Chief Executives of Declared Authorities in Schedule 3 to the Public Sector Management Act

4. Chief Executive Officers listed in Schedule 3A to the Public Sector Management Act.

5. Judges of any NSW Court

6. Magistrates

7. The Independent Commission Against Corruption Commissioner
Assistant Commissioner

8. Appointees to the following positions:

Ambulance Service of NSW Chief Executive Officer

Anti-Discrimination Board President

Attorney-General's Department Crown Advocate
Solicitor General

Board of Studies (under the Education
Reform Act) President

Building Services Corporation General Manager

Coal Industry Tribunal Member

Coal, Oil & Shale Mine Workers Superannuation
Tribunal Chairperson

Commercial Tribunal of NSW Chairperson

Commissioners of Inquiry (Office of) Chairperson
(Dept of Planning) Deputy Chairperson
Commissioner

Community Welfare Tribunal President

Compensation Court of NSW Commissioner

Consumer Claims Tribunal Senior Referee
Coroner's Court Referee
State Coroner
Deputy Coroner

Court of Appeal President

Dairy Corporation of NSW General Manager

Equal Opportunity Tribunal Senior Judicial Member

Equal Opportunity in Public Employment (Office of) Director

Fair Rent Board Tenancy Commissioner

Guardianship Board President

G.R.E.A.T Senior Chairperson
Chairperson

Industrial Relations Commission President
Vice President
Deputy President
Chief Industrial Magistrate
Conciliation Commissioner

Judicial Commission Chief Executive Officer

Law Reform Commission Commissioner

Licensing Court Chairperson

Liquor Administration Board Licensing Magistrate

Local Land Boards Chairperson

Mental Health Review Tribunal President

Ombudsman's Office Deputy Ombudsman
Assistant Ombudsman

Police Board Chairperson & Full-time
Member

Police Service of NSW Commissioner
Deputy Commissioner
(State Commander)

Police Tribunal President

Prices Commission Chairperson

Privacy Committee Executive Member

Protective Commissioner (Office of the) Protective Commissioner

Public Prosecution (Office of) Director

Residential Tenancies Tribunal Chairperson & Full-time Member

State Crime Commission Chairperson & Full-time
Members

Strata Titles Board Strata Titles Commissioner

Transport Appeals Tribunal Chairperson

Veterinary Surgeons Disciplinary Tribunal Chairperson

Victims Compensation Tribunal Chairperson
Members