[foundation-board] [TIME-CRITICAL] Options re Near-Term Structure of Engagement of the ED / CEO

Tue Apr 21 07:05:37 UTC 2015

On 21 April 2015 at 01:06, Tom Cobbold <tomcobbold at yahoo.co.uk> wrote:

> Either option could fail to deliver a UK located CEO later (he could quit
> on an employment contract just like he could quit being a contractor), so
> in that sense it’s a +1 from me too.
>

Great.

> The central question to me is not healthcare(!) but whether we require a
> relocation.  If we don’t require him to relocate then he doesnt need a UK
> employment contract does he, he needs a German one, and surely we can
> establish the ability to hire him in Germany between now and whenever if we
> don’t have that facility just yet ?  We did advertise the job
> internationally, didn’t we ?  We did expect we might hire a Berliner -
> Karin even said as much at board meeting months back — was it a premonition
> ?*!
>

I won't go into this right now but you are right that there will be things
to consider here - as flagged in my email there will be some interaction
between the "Hubs" question and his location (and hence location where we
do employment).

> Surely the waiving of the "1 month outside the UK” thing means he’s not
> required to relocate, whereas option 2 is a UK employment contract, he’s
> coming to the UK in September ?
>

Both options involve a UK employment contract - just at different dates.
The waiver might be slightly different on the 1m but in either case, if the
contract were not novated, he would be required to be located in the UK for
the majority of this work time.

> I wonder whether he’ll try and renegotiate when we get nearer September,
> once his feet are under the table ?  Fine, if we don’t need him to relocate
>  . . . I’m just trying to have my own premonition here - partner in Berlin,
> not relocating yet under either contract, no fixed office to come to anyway.
>

This is a great point for clarification: I think it is almost certain that
he will want to look at the overall "does OK have a physical Hub or Hubs"
question and that may feed in to a location question for him. We have
specifically discussed this and I think we - and he - will want to look at
this asap. I do believe based on conversations that he will come to this
looking at what is best for OK. However, the obvious 2 locations are London
or Berlin and it may be possible - even likely - that Berlin were chosen.
In that case, there may well be a suggestion of him remaining in Germany
and us switching from UK employment to German - i.e. novating the contract
come the Autumn.

The advice we have had from Penny, and the outcome of our own discussions
is that is acceptable and that we still want to have an employment contract
in place now even if it may be novated in the future.

> I think he should undergo a medical - the fact that healthcare has been
> mentioned is not relevant, but it did prompt me — I’m having one myself
> this week *cough*, new employer requires it, seems good practice.
>

I really don't think he has any kind of medical condition - i think he is
just understandably worried in case of the risk.

Forgive me one very very basic question - how good is his written English ?
>

Very good.

Rufus

>
> Best,
> Tom
>
> On 20 Apr 2015, at 22:16, Helen Turvey <
> helen.turvey at shuttleworthfoundation.org> wrote:
>
> +1.
>
> Question: have the staff/smt met him?
>
> On 20 April 2015 21:53:29 BST, paula le dieu <paula at ledieu.org> wrote:
>>
>> Thanks Rufus.
>>
>> I don't share the concerns regarding option 2. If that ensures that Pavel
>> is able to devote time and energy to the new role rather than worried about
>> his families healthcare then it sounds like a good option. The optics are
>> all very easily explained by the situation.
>>
>> Either way, go ahead.
>>
>> Regards
>> Paula
>>
>> On 20 April 2015 at 19:08, Rufus Pollock <rufus.pollock at okfn.org> wrote:
>>
>>> Hi All,
>>>
>>> Exec summary: Karin (and I) are requesting approval from the board to
>>> proceed with either of 2 options for the engagement of the ED candidate
>>> (depending on what we (OK) can agree with him). Option 1 involves him
>>> signing now to be a UK employee from the 1st June and being a contractor
>>> until then. Option 2 involves him signing an agreement now to be a UK
>>> employee from 1st September and a contractor (full time from 1st June)
>>> until then. In both cases he would be announced as our CEO as soon as
>>> possible. If we hear nothing in the next 18h we will assume we are good
>>> to proceed.
>>>
>>> Following the selection of Pavel Richter for the ED / CEO role, Karin
>>> with support from myself has been leading on the negotiation with Pavel
>>> over the last 4 weeks. This has proved a slightly more drawn out process
>>> than anticipated because of issues around location. Here are the key points:
>>>
>>>
>>>    - Pavel is based in Berlin at present (and his partner works there
>>>    too)
>>>    - There are reasons why Pavel should be in the UK:
>>>    - We only support UK based employment and our CEO should be employed
>>>       - [Not actually relevant but originally considered so] If UK is
>>>       our central hub our CEO would need to be here. However, there is
>>>       uncertainty about where - if anywhere - we will have our physical “Hubs” so
>>>       this point can be left for the present (though we would aim to look to look
>>>       into this as it may intersect with employment location question)
>>>       - We want to get him on board as soon as possible
>>>
>>>
>>> Since it is a significant - and potentially costly - matter for Pavel to
>>> relocate immediately (given family etc) it seems sensible to allow for some
>>> deferral a) to allow for the “Hubs” question to be addresses b) so that if
>>> he does relocate it can be done in the most efficient way for him, his
>>> family and us.
>>>
>>> Based on discussions so far the 2 options on the table are:
>>>
>>>
>>>    - Option 1: he signs UK employment starting 1st june and is a
>>>    contractor from now until then (1st June because he has other engagements
>>>    to wrap up before he can be full time)
>>>    - We waive current clause in our contract about no more than 1m
>>>       outside the UK and leave to him how much time he spends in UK in the
>>>       initial 3-4m .
>>>       - What’s the issue: Pavel is concerned that because he may not be
>>>       working in the UK or residing in the UK, even if he pays national insurance
>>>       there could be an issue with getting health treatment in Germany during
>>>       this initial period in case of a medical emergency. He could try to pay
>>>       health-care in Germany but that would possibly raise flags and he/we would
>>>       then be paying in 2 places at once. There is also a - minor issue - for us
>>>       that depending on where pavel actually spends his time for these few months
>>>       we may pay social security in the wrong country.
>>>       - Option 2: he signs now UK employment starting 1st september and
>>>    is contractor until then (full-time from 1st June and part-time before
>>>    that).
>>>    - The concern: it would be normal for the CEO to be a full-time
>>>       employee and not a contractor.
>>>       - How does it look to staff (if they found out), funders and so
>>>       on.
>>>
>>>
>>> Rufus and Fiona’s preference in order from this set is:
>>>
>>>
>>>    - option 1 with Pavel funding and managing health-care and social
>>>    security questions
>>>    - option 2
>>>    - option 1 with OK funding additional monies and complexity (and
>>>    further delay in signing).
>>>
>>>
>>> Pavel prefers option 2 and thinks it is not an issue being CEO and
>>> initially being a contractor: this can be presented - and honestly - as a
>>> transitional setup as we resolve location, and we can always seek to grant
>>> him signing rights if needed. I tend to agree but I am not an expert. It is
>>> also the case that option 2 saves some money and (very minor) legal risk.
>>>
>>> What is being asked of the Board: are you happy with either option as a
>>> form of engagement - and therefore can Karin and I proceed in closing on
>>> one of these (in the next day or so).
>>>
>>> I note that I met with Pavel and went through these options with him. He
>>> has a strong preference on Option 2 (he is quite concerned about how to
>>> sort out the health insurance question easily and appropriately). However,
>>> if Option 1 were the only option I think it would be possible (though
>>> possibly involving some additional expenditure and some additional
>>> discussion with him).
>>>
>>> Regards,
>>>
>>> Rufus
>>> --
>>> *Rufus Pollock*
>>> *Founder and President | skype: rufuspollock | @rufuspollock
>>> <https://twitter.com/rufuspollock>*
>>> *Open Knowledge <http://okfn.org/> - s*ee how data can change the world
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>>> <http://blog.okfn.org/>*
>>>
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>>
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-- 

*Rufus PollockFounder and President | skype: rufuspollock | @rufuspollock
<https://twitter.com/rufuspollock>Open Knowledge <http://okfn.org/> - see
how data can change the world**http://okfn.org/ <http://okfn.org/> | @okfn
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