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Mr Ian Macgregor

Volume 984: debated on Thursday 8 May 1980

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asked the Secretary of State for Industry (1) how much is to be paid to Russell Reynolds for helping recruit Mr. Ian MacGregor; and who will pay it;(2) whether the payment or payments to Russell Reynolds for helping recruit Mr. Ian MacGregor will be related to his pay to the payments to be made to Lazard Frères, or to any other factors.

Russell Reynolds Associates Inc. was engaged on standard terms, namely, a fee calculated on the basis of a proportion of the first year's remuneration received by the new BSC chairman, if he was appointed with its assistance. Russell Reynolds is also being reimbursed for its expenses incurred during the search for a new chairman. The payments are made by the Department of Industry.

asked the Secretary of State for Industry how many people Russell Reynolds interviewed in the course of its efforts to recruit a new chairman of the British Steel Corporation.

Russell Reynolds supplied a list of 31 people whom it had approached or considered for the BSC chairmanship.

asked the Secretary of State for Industry how many people Russell Reynolds recommended to him as possible candidates for chairmanship of the British Steel Corporation; and how many of them were British.

Russell Reynolds presented seven possible candidates, of whom five were British.

asked the Secretary of State for Industry whether any payments or inducements in cash or kind, additional to those outlined in his statement of 1 May, are to be made by the Government or the British Steel Corporation to Mr. MacGregor; and if he will list them.

Mr. MacGregor will serve as part-time deputy chairman of the British Steel Corporation from 2 May to 30 June at a salary of £15.000 a year. From 1 July he will serve as chairman on the terms indicated in my statement on 1 May. No other payments in cash or kind are to be made by the Government or BSC to Mr. MacGregor, beyond the £48,500 annual salary referred to in that statement, except to the extent that Mr. MacGregor is entitled to allowance for travel, accommodation and other expenses appropriate to his position as chairman of BSC.

asked the Secretary of State for Industry whether the involvement of Lazard Freres in assessing the results achieved by Mr. Ian MacGregor at the British Steel Corporation will mean that this United States bank will be involved in determining at the outset the output, productivity and other targets of the British Steel Corporation.

No. BSC's financial and other objectives will as hitherto be set in consultation between the Government and the corporation's management. The assessment of Mr. MacGregor's performance, in which Lazard will have a say through the performance review committee, will be done separately.