The top job at the Tees Valley Combined Authority (TVCA) is to be axed as part of a ‘restructure’ – as its chief executive is set to retire. TVCA’s group chief executive, Julie Gilhespie, is stepping down. The organisation is now expected to undergo an overhaul which will see the role abolished.
In documents seen by the Local Democracy Reporting Service, a “revised senior management structure” is proposed “in response to the group chief executive’s declared intention to retire from the organisation within the next 12 to 18 months.”
Gilhespie was appointed chief executive of TVCA in November 2018. In May 2020, she became the group chief executive for both the South Tees Development Corporation (STDC) and TVCA. She was also a director of Teesworks Limited (TWL) from July 2020 until this month. She was removed from this position at the STDC board meeting on 5 December.
Perception of conflict of interest
The document explains that the group chief executive post is to be deleted and “the separation between the roles of the chief executive of TVCA and STDC” will be re-established. It is believed that this move “will assist in managing any perception of conflict of interest between the roles” and allow the TVCA to focus on the upcoming devolution agenda.
The reference to a “perception of conflict of interest” almost mirrors the wording used in the Teesworks review (formally known as the Tees Valley Review), which was undertaken and made 28 recommendations when it was published in January this year.
The document detailed the proposed changes, saying: “It is considered appropriate that the required changes are made expeditiously and so the proposal is to make the changes with effect from April 1, 2025.” This timeline is deemed to minimise disruption to the organisation and “minimise any uncertainty to staff and stakeholders that the changes may cause.
“The head of operations role that directly supports the group chief executive is also proposed to be deleted,” the document explained. “It is anticipated that STDC Board will be asked to consider regrading the existing chief operation officer of STDC to chief executive”. This action would mean that the chief executive of STDC would gain all of the responsibilities that the group chief executive had “in respect of STDC and its subsidiaries”.
John Barnes is the chief operating officer at STDC and likely to be regraded as chief executive of STDC. At a meeting of the STDC board, on Thursday 5 December, the board voted to appoint him as director of South Tees Developments Limited, and as a director of South Tees Site Company Limited. He was also appointed to be STDC’s nominated director of TWL, replacing Ms Gilhespie in the process.
The Tees Valley Review said: “The interests of TWL haven’t always been aligned with those of either TVCA or STDC, particularly after the re-distribution of share ownership and this gives rise to potential/perceived conflicts of interest which could be avoided by another TVCA, or an officer from a constituent authority, undertaking the TWL director role in place of the chief executive.”
It is not clear who will become TVCA chief executive. Neither TVCA nor the Tees Valley Mayor Ben Houchen wished to comment.
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