Practical Guidance for Members of Management Board’s Recruitment

We meet with numerous complaints in Slovenia when it comes to the recruitment of management board positions. The biggest complaint paints an image of mutually interconnected management boards and supervisory board members who make unprofessional and politically motivated selections of the members of management boards who are frequently replaced and whose terms of office are sometimes of extremely short duration. This, of course, applies mainly to companies, in which the state is the only or largest shareholder. Frequent replacements of senior management at companies are neither good for the shareholders and other stakeholders or for the company itself.

The politicisation and the pursuit of selective personal interests when recruiting members of management boards must be overcome by setting professional selection criteria and through professionally conducted candidate selection procedures that will allow supervisory board members to justify their selection and implement their due diligence in regard to the recruiting the members of management boards. Professionally conducted procedures and recruiting criteria are also in the interest of the selected candidates because they eliminate eventual doubts as to the candidates' professionalism and references as well as the suitability of their selection.