OECD Working Group Meeting Focuses on the Quality of SOE Board Member Selection Processes
Last week, Jurgita Bagdonienė, Acting Head of the Governance Coordination Centre (VKC), participated in the annual meeting of the Organisation for Economic Co-operation and Development (OECD) Working Party on State Ownership and Privatisation Practices.
One of the main topics of the meeting was the quality of board member selection processes in state-owned enterprises (SOEs). The OECD presented an initiative to assess selection practices across different countries, identify the most common shortcomings, and highlight best practices.
“High-quality selection of SOE board members is one of the key foundations of good governance. It is important not only to ensure a transparent and professional selection process but also to make sure that board members’ competencies align with the strategic objectives of the enterprises. We hope that the analysis of OECD countries’ experiences will provide valuable insights for improving board member selection practices in Lithuania,” says J. Bagdonienė, Acting Head of VKC.
The centralisation of the State’s ownership functions also generated considerable discussion. The meeting featured an overview of state ownership models applied across 58 jurisdictions, ranging from centralised ownership management in Sweden, Italy, and South Korea to the coordination model used in Lithuania, Latvia, and Estonia, and decentralised management in Japan, Argentina, and Luxembourg.
“It is clear that an increasing number of countries are considering centralising state ownership management. Although there is no one-size-fits-all model, the experiences of other countries offer valuable insights for Lithuania as well. It is important to monitor these trends, assess the advantages and challenges of different models, and explore opportunities to further strengthen SOE governance,” says J. Bagdonienė.
The meeting also addressed the progress of eight countries seeking OECD membership. Particular attention was given to the achievements of Romania and Croatia, while Argentina’s progress in implementing OECD recommendations was assessed in greater detail.
VKC represents Lithuania in the OECD Working Party on State Ownership and Privatisation Practices. Participation in its activities provides an opportunity to contribute to the development of international standards, exchange best practices, and strengthen SOE governance in Lithuania.
