SOEs instructed to prioritize Master’s degree holders when appointing chairpersons

The Privatization and Corporatization Board (PCB) on Wednesday amended the criteria for chairperson appointments at state-owned enterprises, requiring companies to prioritize Master’s degree holders.

PCB’s members passed the amendments by unanimous consensus on Wednesday. The board shared a circular regarding the changes on Thursday.

According to the PCB, the changes were made to ensure that the most capable candidates are appointed to boards of SOEs.

The previous criteria for appointment of chairpersons to SOEs was 60 percent pass rate from the interview, creative thinking, vision, diverse experiences and the capability to develop the company.

The amendment introduces two new criterions with the previous one included as a third optional criterion.

The new criterions are:

• Holding a National Qualifications Framework Level 7 (Master’s degree or Postgraduate degree) certificate and minimum five years of experience in a related business field; or
• Minimum seven years of experience in business administration or management.

The amendment comes amid public concern over the appointment of political activists to leadership roles at SOEs instead of more educated, capable and experience individuals.