Key facts
- Dame Jayne-Anne Gadhia, nominee for FRC Chair, was grilled by MPs over holding seven other board and chair positions.
- Gadhia currently holds roles including Chair of Ovo Energy, Shakespeare's Globe, and the Tate audit committee.
- She stated she will step down from the Tate role and leave Ovo Energy.
- MPs expressed concern about Gadhia's capacity to manage multiple demanding roles.
- Gadhia advocated for the FRC to be placed on a statutory footing with enhanced powers.
MPs have raised concerns about Dame Jayne-Anne Gadhia's ability to effectively chair the Financial Reporting Council (FRC) while holding seven other board and chair positions. Gadhia, who was named as the next Chair of the accounting watchdog and is set to take over in September, faced a pre-appointment grilling by the Business and Trade Committee.
During the session, Gadhia was questioned on her extensive portfolio, which includes chairing Ovo Energy, Shakespeare’s Globe, Ozone and Moneyfarm, the Tate audit committee, and the Economy and Honours Committee, as well as serving as lead non-executive director at HMRC. MPs, including Chair Liam Byrne, expressed worries about potential overload, with Byrne stating, "There are only 24 hours in a day… We are pretty concerned about the overload here."
Gadhia argued that many of her current roles demand limited time and that remote working via video conferencing would allow her to address FRC emergencies at short notice. She confirmed she will step down from her Tate role when her term ends in November and is leaving Ovo Energy following its sale, but declined to name other positions she plans to relinquish.
On the subject of the FRC's powers, Gadhia backed plans to give the watchdog a statutory footing, emphasizing the need for guaranteed funding and legal authority to access firm data, contrasting with the current voluntary arrangements. She acknowledged that the FRC currently lacks the power to require information in all cases and agreed that bolstering these powers should be a priority. The committee also questioned her on the lack of competition in the UK audit market, specifically the significant market share held by the Big Four firms.