Recruitment of Turnaround Director for Ferguson Marine: FOI release

Information requested

1. How many candidates were (a) approached (b) interviewed for the job of Turnaround Director (TD) for Ferguson Marine?

2. Was a recruitment consultant used and if so how were they renumerated (fixed fee or % of agreed salary/day rate)? What was the cost of this?

3. What specialist skills were identified as critical for applicants for the TD job?

4. Were applications sought from people experienced working within Scotland and specifically for organisations such as banks and accountants who use turnaround directors?

5. What evidence was produced that Tim Hair had recently used his marine engineering skills?

6. What evidence was produced that Tim Hair had skills relevant to the sector and evidence of senior executive experience in the same?

7. Was Tim Hair employed at the time he was recruited? If so, who was his employer? If not, how long had he been unemployed?

8. What were Tim Hair’s previous appointment as a transformational Specialist and what was the outcome of these appointments?

9. What references were secured by previous appointments and in particular the last 2.

10. Who was on the panel that appointed Tim Hair?

11. Did the panel secure the input of any independent specialist advisers (ie KPMG) to endorse his appointment?

12. On what date in August 2019 did Tim Hair start work?

13. What were the agreed weekly hours for Tim Hair and who could approve additional hours?

14. What was the agreed daily pay rate for Tim Hair?

15. How was the daily rate assessed and how was this benchmarked for similar appointments especially in Scotland?

16. What is the contractual duration of the Tim Hair’s appointment?

17. Does the daily rate include payment to the recruitment consultant (if appropriate)?

18. What weekly expenses (including travel and accommodation) were agreed for Tim Hair and could he charge hours spent travelling on a day or part day rate?

19. Was the appointment signed off by an elected member of the Scottish Government and if so who?

20. Is Tim Hair still paid on a daily rate? If not when was he put on a full time contract? If Tim Hair is on a full time contract was this agreed by an elected member of the Scottish Government, and if so, who.

21. Has the output of Tim Hair been reviewed and if so by who?

22. What arrangements exist for the periodic ongoing review of his output?

23. What has been the total cost to date for Tim Hair since he has been employed and can this be broken down into days worked, expenses, recruitment costs etc for each respective financial year?

24. Were local candidates considered for the role?

Response

1. (a) 6 (b) 3

2. No.

3. Following consideration of CVs, senior officials interviewed three candidates by phone and concluded that Tim Hair, who operates through his own service company Melville Management Ltd, had the requisite skills and experience to perform the role. Tim has significant experience in the engineering and automotive sectors, has led a number of business turnarounds and transformations and is a member of the Institute of Marine Engineering Science & Technology and the Institute of Turnaround.

4. See answer to question 3 above.

5. The primary requirement when recruiting the Turnaround Director was experience of turning around engineering businesses with an emphasis on a collaborative approach to re-set the relationship with customers and Tim Hair was selected on this basis. Additionally, Tim Hair had shipping experience in his early career.

6. See answer to question 5 above.

7. Tim Hair was employed as a Director of Melville Management limited and as Chairman of South Wales Industrial Valve Services Limited.

8. In the period since 1995, Tim Hair has led multiple turnarounds in several industrial sectors. The exact details of each are covered by Non-disclosure agreements.

9. References were obtained from Non-Executive Directors covering Tim Hair’s career since 2007.

10. Richard Rollison, Acting Director for Economic Development
Roy Brannen, Chief Executive of Transport Scotland

11. Yes, Price Waterhouse Cooper (PWC).

12. Mr Hair took up appointment on 14 August 2019.

13. Tim Hair’s contract requires him to be available for at least 4 days each week and to work a minimum of 8 hours per day. He is not paid by the hour so approval of additional hours is not relevant.

14. £2,850 per day plus reasonable expenses, including costs of living in Scotland Monday – Friday. A 10% reduction to the day rate was agreed in February 2020 to £2,565 and came into effect on 1 March 2020.

15. Tim's net cost of £2k was in the middle of the industry norm. His net cost is what he receives after deductions such as income tax and national insurance. PWC advice was that £2k - £2.5k net is very much in line with the going rate for this type of role: where there are significant PR and reputational risks to be managed.

16. The contract was for an initial period of two to three months with the option to roll forward on a monthly basis but with a four week notice period.

17. No.

18. Travel and subsistence is reimbursed in line with Scottish Government policies. Time travelling to and from the shipyard is not billable.

19. Yes, Derek Mackay MSP, Cabinet Secretary for Finance, Economy and Fair Work.

20. Yes, the current Turnaround Director is still on a daily rate.

21. Monthly progress reports are sent to the Scottish Government, CMAL and Transport Scotland.

22. The Turnaround Directors performance and output are monitored on an ongoing basis by the non-executive directors with feedback as and when required advised via the Chairman. The Turnaround Director and Chairman meet (virtually) once per week as a minimum.

23. Please see Annex attached. 

24. Candidates with the relevant skills and expertise were considered. Where candidates resided was not taken into consideration as part of the recruitment process.

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FOI202100223540 - Annex

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