CBI to shake up board and cut jobs after president is ousted
Scandal-driven lobbying group CBI seeks to shake up the board and cut jobs as President Brian McBride is told to step down early
- Brian McBride could leave as early as January next year, five months early
- Four board members of the CBI will also be replaced
- Ffion Hague will carry out an evaluation of the way the organization is managed
The CBI has announced sweeping plans to overhaul its board and hire a new president as the business lobby group struggles to survive a damaging sexual harassment scandal.
The beleaguered group is urging members to support its plans at an emergency general meeting to be held next week.
Yesterday it said Brian McBride, who has been president since the summer of 2022, could leave as early as January next year, which is five months before his term ends.
And four members of the board of the CBI will also be replaced.
Brian McBride could leave as early as January next year – five months before his term expires
Ffion Hague, a corporate governance expert and the wife of former Conservative leader Lord Hague, will conduct an investigation into how the organization is run.
With 190,000 members, the Confederation of British Industry prides itself on influencing the government on policies such as Covid support packages that have helped many businesses survive Covid lockdowns.
But the organization has been plagued by shocking allegations of vile conduct, including allegations of rape that are being investigated by police.
But in an announcement yesterday about its future plans, while acknowledging the need for change, the body said it had been cleared by independent experts of suggesting it had a “toxic culture.”
The ‘prospectus’ stated that the CBI wanted to return to its position as a representative of all types of companies to the government.
That prestige has vanished after the sickening allegations about the organization’s goings-on surfaced earlier this year, leading to an exodus of major corporations from Aviva to John Lewis.
And the government has since denounced the CBI.
Treasury Secretary Jeremy Hunt said last month there was “no point” in talking to it after companies left it en masse. It remains to be seen whether the changes announced yesterday will be enough to convince companies to return.
Review: Ffion Hague, a corporate governance expert and the wife of former Conservative leader Lord Hague
At next week’s vote, members will be asked if the changes made “give you the confidence you need to support the CBI.”
The organization is also reportedly preparing to announce layoffs — following the financial blow caused by the loss of dozens of companies and their annual subscriptions.
It has told members that if it wins their support, the body can regain a seat at the top table of ministers, advise on policy and lobby on pledges in the election manifesto.
Next week’s emergency general meeting, in which voting has already begun, comes after the CBI paused public activities in the wake of the scandal.
In recent months, the organization has sought the opinion of 1,000 business leaders about its future. The CBI said it had found they wanted to see a “strong, collective, national corporate voice” ahead of the general election likely to take place next year.
Insiders would be frustrated that the British Chambers of Commerce, a rival business lobby group, appears to have attempted to usurp that role.
CBI Director General Rain Newton-Smith said: “Our members and colleagues have spoken. We listened, we acted and we take responsibility.
“We will learn the lessons and emerge as a stronger organization, one that is able to share what we have learned and regain the right to always be a trusted voice.”