Minutes of the Meeting of the Court of Directors held on 19 September 2024

1. Conflicts, Minutes and Matters Arising

There were no conflicts declared in relation to the present agenda.

The minutes of the meeting held on 5 July 2024 were approved.

The Chair informed Court that the Bank’s Cyber Security team would hold a session for Court at its next meeting in October. He added that the Bank’s review of its strategic priorities would also come to the next meeting of Court.

The Chair also welcomed the appointment of Sebastian Walsh who had been appointed as Executive Director, Head of Leeds and Secretary to the Bank.

Under Matters Arising, the Secretary noted that progress against the Bank’s 2023 Viewpoint commitments would be addressed as part of the COO update. He also updated Court on the secretariat’s planning for a future meeting of Court at the Bank’s Leeds office.

2. RemCo Update

Diana Noble updated Court on recent meetings of RemCo, including the Pensions Review and the Annual Salary Review.

3. Governor’s Update

The Governor updated Court on developments since its last meeting.

The Governor noted the launch of the formal consultation with staff on the pensions review.

The Governor also updated Court on early engagement between the Bank and the new Government areas. Court members noted the progress on Basel 3.1, and that industry reaction had been largely positive.

4. COO Update

(Ben Stimson, Natasha Oakley, Mark Menary and Natasha Wilson)

Ben Stimson informed Court that good momentum had been maintained across a number of change initiatives. These included the Bank’s progress towards using Cloud services for its technology systems and recruitment of critical roles. He added the Bank was also on track to deliver its strategy for expanding its office in Leeds.

Court reflected on staff sentiment as measured in the recent Viewpoint survey.

Non-executive members of Court noted the experience of other industries at present and how to balance the positive benefits of flexibility for staff morale with the risks of detachment. Frances O’Grady noted that the development of the Leeds office gave the opportunity to test different approaches to culture building.

Jonathan Bewes informed Court that ARCo wished to assess how the Bank’s portfolio of investment projects was being managed and how decisions might be best sequenced.

1. Colleague Insight Survey Results, Summer 2024

Mark Menary advised Court on the results of the latest Viewpoint survey.

Court members discussed the results.

Court members noted the challenges posed to career progression by the current low level of attrition.

Court members also reflected on the findings around equal opportunity.

The Governor said the Bank’s response would focus on a few key issues, and that it would be open with staff on this. The Chair said that any response should be rooted in the Bank’s strategy development, which was currently ongoing.

1. Pensions Review

Natasha Wilson introduced the item, noting that engagement with the Union had been intensive, including around communication planning.

Natasha Wilson noted feedback had focussed on the personal financial impact of proposals – both the scale and timing – and particularly the transition arrangements. The Bank had considered this feedback in the renewed proposals.

The Bank was now in formal consultation with staff.

The Chair concluded the item by observing the importance of improving understanding of pensions, both among Bank staff and more broadly, noting it was a complex subject. He added that the Bank was part way through a major change agenda and was clearly working hard in learning how to execute this at pace and with intensity.

5. RTGS Renewal Update

(Victoria Cleland, Nathan Monk and John Stocker)

Victoria Cleland updated Court on the RTGS Renewal Programme. Victoria Cleland noted that testing had progressed well. However, the Bank’s partners had identified a number of issues that meant that the TS3 go live would need to be delayed to ensure the Bank had sufficient confidence in its stability before launch.

Court noted their support of delaying launch.

Members of Court reflected that the stability of the system should be the key determinant and driver in choosing a new date for launch.

Court registered its thanks to staff working on RTGS Renewal Programme.

6. Location Strategy Project Update

(Vivienne Grafton and Ivar van Hasselt)

Vivienne Grafton updated Court on progress made with regards to the Bank’s Location Strategy, since it was discussed at its May meeting.

The Bank’s expansion in Leeds was noted, and is to be achieved through relocations from London and new hires in the local area. There was broad enthusiasm for the expansion and a good level of interest had been registered in relocating by staff currently working from London.

Ivar van Hasselt set out that in time around 10% of each individual area overseen by a Deputy Governor – or the Governor - would be based in Leeds. Within that strategy, it was open to Executive Directors to decide whether to build centres of excellence in Leeds for particular functions or take a broader cross-section of roles. Not all roles would be equally suited to being done from Leeds.

Court observed the importance of collective leadership and Governors’ championing the operation in Leeds to ensure its success.

Turning to the Bank’s London locations, Vivienne Grafton set out that the focus was on modernising the Threadneedle Street premises in line with modern working practices while respecting the heritage of the building.

Court expressed its support for the Location Strategy and the expansion of the Leeds office.

7. Union Presentation

(Faisel Choudhry)

Faisel Choudhry was welcomed to the meeting.

Faisel Choudhry updated Court on the work of the Union and the views of its members, whose numbers had grown.

Court commended Faisel Choudhry for his advocacy for Bank staff and his constructive engagement with the Bank’s executive.

8. Gender Action Plan

(Nathanael Benjamin, Natasha Oakley, Lisa Leaman and Baljinder Virk)

Lisa Leaman set out the action plan.

Court members noted the importance of a careful review of the Bank’s gender targets at all levels, to ensure it developed and retained a strong pipeline of female talent.

Several members of Court noted a common theme with other aspects of diversity and inclusion, in that progress would depend on developing strong people managers who could execute policy effectively in this space.

The Chair thanked members of the Bank’s Women in the Bank Network and the Bank’s People Directorate for their work on the action plan.

9. Disability Programme Deep Dive Update 2024

(Victoria Cleland, Natasha Oakley, Frances Hill and Rohan Tambyraja)

The Chair welcomed the presenters to the meeting.

Rohan Tambyraja introduced the item. He emphasised the importance of improving transparency and committing to delivering best practice.

Victoria Cleland said there had been good progress in delivering workplace adjustments and noted the work of the People Directorate in this area.

Members of Court observed the need for strong line management support of colleagues with disabilities, the importance of champions and allies.

The Chair thanked the presenters and affirmed Court’s support for their ambitions in this area.

10. Annual update on the Resolution Directorate (RD) including the Financial Stability Banking Operations (FSBO) update on the Bank’s readiness to provide emergency liquidity support

(Ruth Smith and Andrew Hewitt)

Ruth Smith updated Court on the Resolution Directorate’s work over the past year. Dave Ramsden noted some organisational changes made to the Directorate, to enhance its resilience.

11. Our Code

(Sebastian Walsh, Michael Salib and Alison Kavanagh)

Sebastian Walsh introduced the item, noting changes made following Court members’ comments.

Court approved Our Code, subject to some final amendments to be approved by the Chair.

12. Committee Appointments and Conflicts Update

(Sebastian Walsh)

Court noted the paper.

13. Papers for Information

Court noted:

• Monetary Policy Committee Report
• Scottish & Northern Ireland Banknotes Annual Report 2024
• Approved minutes from committee meetings since the last meeting of Court on 5 July 2024

The meeting of Court was closed.