PI INTERVIEW
Philip Remnant
The full economic consequences of the current situation are still to be felt
PI – What are the objectives PR – It will not change so far having one signifi cant, and PI – Will investment banking
of the Shareholder Executive? as the Shareholder Executive possibly majority, shareholder. business models have to
is concerned. Although the In addition, there are change now, and if so, how?
PR – Th e Shareholder Executive vast majority of our portfolio commitments on lending levels
was formed in 2003 to improve companies are wholly owned, and restrictions on dividends PR – I do not think that the
fundamentally the some such as British Energy, agreed as part of the funding models themselves will change.
Government’s performance as a QinetiQ and NATS (air package which will have an Th e standalone advisory fi rms
shareholder in government- traffi c control) have outside impact on the running of the and boutiques will continue to
owned businesses. We have a shareholders. Th e fi rst two are businesses going forward. exist and to argue the merits of
portfolio of 29 businesses, publicly listed. So, we already independence. For their part,
which include organisations as have extensive experience of PI – Do you feel that we have the bulge – bracket investment
diverse as Royal Mail, managing shareholdings in passed through the worst of banks will point to their
Northern Rock, British Energy, this context: our guiding this crisis? strongly capitalised balance
Channel 4 and the Royal Mint. principles in terms of sheets, their capacity to provide
maximising shareholder value PR – It depends upon your fi nance in diffi cult times and,
PI – What are the remain the same, although defi nition of crisis! due to their closeness to the
implications of taking on they may need to be tailored Th e problems to date have markets, their ability to judge
additional fi nancial according to individual principally been confi ned to what is and is not achievable.
institutions to the portfolio, circumstances. the fi nancial sector and have Th ere will, however, be fewer
such as Northern Rock? I cannot speak for the been ones of liquidity. Th e players in the market. It is those
boards of the banks themselves UK bank bailout plan has occupying the middle ground
PR – Perhaps surprisingly, not nor for their shareholders. Th e been well received and indeed with no diff erentiated off ering
as signifi cant as you might fi duciary responsibilities of the been copied around the who will be squeezed.
expect. Clearly, this is a very directors remain the same, world. Th e money markets
high profi le assignment and we irrespective of the change in the appear slowly to be unlocking
Since this interview has taken place
are devoting a lot of time and shareholder base, although the but underlying confi dence is
the Government has established UK
Financial Investments Limited (UKFI).
energy in helping the Treasury balance of shareholder still lacking and therefore the
In due course, the Government
manage their investment. infl uence will have changed in rescue package will take time intends that UKFI will manage its
On the other hand, our the sense of some banks now to be fully eff ective.
investments in Northern Rock.
portfolio covers a wide variety
of sectors and is never static.
PROFILE – FACT BOX
Th is year we have also
assumed responsibility for the
Phil Remnant
Nuclear Decommissioning
Career highlights:
Authority – the cost of
Philip Remnant was appointed non-executive
managing energy liabilities chairman of the Shareholder Executive on 25
represents around half of the June 2007. His responsibilities include
Department for Business’ providing strategic direction to the Shareholder
annual budget – and sold our Executive and developing the Government’s
remaining shareholdings in overall model of share ownership and
QinetiQ and British Energy,
management. He is also a senior adviser of
the latter for over £4 billion.
Credit Suisse’s investment banking division in
Europe, and was previously a vice chairman of
PI – Will the overall model of
CSFB Europe and head of the UK investment
shared ownership change as a
banking department. He was director general
result of the banking bailout?
of the Takeover Panel between 2001 and 2003.
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