Decision

Summary of business appointments applications - Sir Bernard Gray

Updated 12 April 2017

Sir Bernard Gray left his role as Chief of Defence Materiel in November 2015.

1. Commissions with McKinsey & Company and Immediate Media Company

Sir Bernard Gray sought the Committee’s advice about taking up commissions with McKinsey & Company and Immediate Media Company.

The Committee noted that Sir Bernard had set up a consultancy called Pole Star Strategy in December 2015 which he described as; “providing senior management advice to private sector organisations and foreign friendly governments in matters such as corporate direction and strategy, negotiating skills, corporate transformation, financial reconstruction and capital change, business recovery and turnaround skills.” The Committee was not approached for advice and was unwilling to give retrospective approval for the establishment of Pole Star Strategy or his subsequent contract with the MoD.

When considering the commission with McKinsey & Company, the Committee took into account a number of factors, which are listed in the advice letter, including that the commission is based overseas and will involve working with the US Army to review their procurement processes; that the UK Government is supportive of this work and that Sir Bernard had no intention of working in the UK defence sector.

The Committee also noted that Sir Bernard had no contractual dealings with Immediate Media during his last two years of service, did not advise on any related contracts, and had no involvement in any decisions or policies that could have affected the company or its competitors.

Taking into account the specific facts in this case, in accordance with the Government’s Business Appointment Rules, the Committee advised the commissions be subject to the following conditions:

• A waiting period of nine-months from his last day of Crown service;
• For two years from his last day in service he should not work for McKinsey & Company in the UK Defence market;
• For two years from his last day of service he should not provide advice to McKinsey & Company or its clients on the terms of a bid or contract relating directly to the work of the Ministry of Defence;
• He should not draw on any privileged information available to him from his time in Crown service; and
• For two years from his last day in service, he should not become personally involved in lobbying the UK Government on behalf of the organisations to which this advice refers or their subsidiaries or clients.

The Committee would expect Sir Bernard to seek further advice if he proposes to extend or otherwise change the nature of his commission with McKinsey & Company and in relation to any new commissions (including new commissions with McKinsey & Company), before taking them up.

The Committee wrote its advice letter to Sir Bernard in November 2016 and he took up the commissions later that month.

2. Commission with McKinsey & Company

Sir Bernard Gray sought the Committee’s advice about taking up a further commission with McKinsey & Company under his independent consultancy.

The Committee noted that the commission is based overseas and will involve working as part of a team to review the readiness of the Netherlands Armed Forces with a view to improving the availability of its military for operations. When considering the application, the Committee took into account that the UK Government is supportive of this work and ten months had passed since his last day in Crown service.

Taking into account the specific facts in this case, in accordance with the Government’s Business Appointment Rules, the Committee advised the commission be subject to the following conditions:

• For two years from his last day in service he should not work for McKinsey & Company in the UK Defence market;
• For two years from his last day of service he should not provide advice to McKinsey & Company or its clients on the terms of a bid or contract relating directly to the work of the Ministry of Defence;
• He should not draw on any privileged information available to him from his time in Crown service; and
• For two years from his last day in service, he should not become personally involved in lobbying the UK Government on behalf of the organisations to which this advice refers or their subsidiaries or clients.

The Committee wrote its advice letter to Sir Bernard in November 2016 and he took up the commission later that month.

3. Executive Chairman, New Scientist

Sir Bernard Gray sought the Committee’s advice about taking up a post with the New Scientist, a weekly international science magazine.

As part of a larger consortium that purchased the New Scientist, Sir Bernard also planned to work for the New Scientist 2 days a week as the Executive Chairman. In this role, he would oversee the commercial and strategic success of the business. The Committee noted this role is closely related to his career prior to that at the MOD.

The Committee’s advice also took into account that Sir Bernard and the MOD confirmed he had no meetings or contractual dealings with the New Scientist during his last two years of Crown service and that whilst Sir Bernard has a longstanding relationship with another of the major investors, this was not related to his time at the MOD. The MOD raised no concerns about this appointment.

The Prime Minister accepted the Committee’s advice that, in accordance with the Government’s Business Appointment Rules, the appointment should be subject to the following conditions:

• he should not draw on (disclose or use for the benefit of himself or the organisations to which this advice refers) any privileged information available to him from his time in Crown service; and
• for two years from his last day in service, he should not become personally involved in lobbying the UK Government on behalf of the New Scientist Ltd, or its partners.

The Committee wrote its advice letter in April 2017 and the role was announced later that month.