Govt eyes top international headhunters to appoint private management for state-owned companies

Newsroom 12/12/2011 | 11:34

The Economy, Trade and Business Environment Ministry (MECMA) says it plans to attract top international executive search firms to select the CEOs for state companies included in the first stage of the program aimed at introducing private management of state-owned companies. The first companies set to get private management are Oltchim, Electrica, Hidroelectrica and Romarm.

In order to attract experienced companies to handle the process, the ministry has set several criteria for entering the selection process for the headhunter. Participants need to have at least 30 offices worldwide and at least ten in Europe, plus an average turnover for the past three years of minimum EUR 40 million. For a consortium, the average turnover of an associate has to have been EUR 10 million or above for the past three years.

The selection documentation stipulates a maximum estimated acquisition price for these services of EUR 250,000 per contract. The price for public auctions is usually lower than the estimated price due to the competition between participants.

The final value of the contract includes, besides management recruitment services, the services provided by the executive search firm for the entire period of the contract and an additional twelve-month guarantee period. The value will cover travel and accommodation costs and interview-related costs for both the representatives of the executive search company and the candidates shortlisted for the final stage, for the contract and guarantee period. If the candidate resigns or the state company terminates the management contract due to the candidate’s fault, the executive search firm will search for and select a new candidate with no additional fee, within the limits of the contract.

Recruitment firms will have three weeks (with a deadline set for December 23rd) to file all the documentation and the bid offer. At the end of the procedure companies will propose to MECMA a shortlist of managers for each of the selected companies.
The ministry is being assisted in the process of finding the international headhunter by executive search company Pedersen&Partners and its subcontractors, management consultancy company Roland Berger and law firm NNDKP.

By establishing these criteria the ministry says it plans to attract and select the most proficient executive search firms, recognized within the international business environment for their expertise, turnover and results, but also their motivation to take part in the project – to ensure the successful recruitment of experienced CEOs, able to efficiently manage the selected companies. In the case of Electrica Furnizare and Oltchim, which will undergo a privatization process, the aim is to prepare them for this process and to receive the best prices from selling the relevant share packages.

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