“Public consultations helped us identify issues as seen by the state institutions, our enterprises and staff selection agencies in this particular area. We heard some proposals on how to improve candidate selection processes. Boards of companies form a vital part of efficient management that facilitates meeting a shareholder’s expectations and company’s goals, controls manager’s activity, ensures transparency and increases return for the state. This in turn means that the board composition process itself must be clear, transparent, professional and productive,” Minister Marius Skuodis commented.
Board members of state-owned companies (SOC) of the Ministry of Transport and Communications must be internationally-experienced and competent specialists possessing suitable personal and professional qualities. Thus, proposals to involve staff selection agencies in setting up board member candidate requirements, as well as participating in assessing possible conflicts of interest and in individual interviews with candidates, were taken into account. Impeccable reputation of candidates is among the highest priorities on the list.
In order to maintain business continuity, the Ministry will consider a possibility to replace only part of board members upon expiration of a four-year term, as an entirely new board constitution might reduce business planning effectiveness and stability. Upon evaluating each member’s contribution, board composition could be renewed gradually.
Another noteworthy aspect is setting up specific candidate requirements taking into account the company’s size, its strategic goals, line of business and shareholder’s expectations. With the help of a competency matrix each candidate may be assessed and compared against others in a clear and transparent way. Greater focus is to be put on upholding gender balance in the Ministry’s state-owned companies’ boards.
The Ministry also intends to evaluate competence of its representatives assigned to the state-owned companies boards and already has a training plan in place.
During public consultations stakeholders also submitted some proposals, which, if to be implemented, call for legislation changes. For instance, such proposals, inter alia, include the addition of independent members to the selection commission, improved adaptation of the selection process for foreign nationals, equal legal regulation of board members’ remuneration, etc. The Ministry of the Economy and Innovation will be consulted with regard to such legislation changes.
Information on planned selection procedures will be made public and available in advance.
Currently, the Ministry carries out the selection of a new board of Lithuanian Railways and prepares the selection procedures for individual board members of AB Lietuvos paštas and state enterprises Lithuanian Airports and Lithuanian Road Administration.
