{"id":34059,"date":"2026-06-08T11:36:17","date_gmt":"2026-06-08T08:36:17","guid":{"rendered":"https:\/\/governance.lt\/naujienos\/valdymo-koordinavimo-centras-inicijavo-diskusija-del-atranku-i-vvi-valdybas-stiprinimo\/"},"modified":"2026-06-16T22:20:08","modified_gmt":"2026-06-16T19:20:08","slug":"valdymo-koordinavimo-centras-inicijavo-diskusija-del-atranku-i-vvi-valdybas-stiprinimo","status":"publish","type":"post","link":"https:\/\/governance.lt\/en\/naujienos\/valdymo-koordinavimo-centras-inicijavo-diskusija-del-atranku-i-vvi-valdybas-stiprinimo\/","title":{"rendered":"The Governance Coordination Centre initiated a discussion on strengthening recruitment processes for SOE boards"},"content":{"rendered":"

The Governance Coordination Centre (GCC) initiated a discussion bringing together representatives of state ownership entities and Lithuania\u2019s leading executive search firms. The meeting focused on the most common challenges in the recruitment of collegiate bodies of state-owned enterprises (SOEs) and explored solutions to ensure an even more efficient, transparent, and professional board appointment process.<\/strong><\/p>\n

The event was attended by representatives of executive search firms J. Friisberg & Partners, AIMS International Lithuania, Master Class Lithuania, Talentor Lithuania, People Link, and Amston, as well as representatives from the Ministries of Economy and Innovation, Energy, Finance, Transport and Communications, and Agriculture.<\/p>\n

According to Acting Head of GCC Jurgita Bagdonien\u0117, the formation of professional and independent boards is one of the most important prerequisites for ensuring effective SOE governance, accountability to society, and the creation of long-term value for the State.<\/p>\n

\u201cCompetent and independent boards contribute directly to more efficient and transparent SOE operations. It is important to continuously strengthen the board recruitment process, align expectations among all stakeholders involved, and seek ways to attract the highest-calibre professionals to SOE boards. We hope this discussion will become another step towards ensuring that the highest standards of professionalism, transparency, and good governance continue to be applied in SOE board recruitment,\u201d says J. Bagdonien\u0117.<\/p>\n

Good Governance Requires Board Continuity<\/strong><\/p>\n

One of the key topics discussed was the timely planning of SOE board member recruitment processes. Representatives of executive search firms and state institutions responsible for organising SOE board appointments agreed that continuity of board operations is one of the fundamental principles of good governance. Therefore, preparations for forming a new collegiate body should begin well before the current board\u2019s term expires.<\/p>\n

According to J. Bagdonien\u0117, the process of forming a new SOE board or supervisory board should be initiated at least six months before the end of the current term.<\/p>\n

\u201cContinuous operation of collegiate bodies is essential for any organisation. Unfortunately, there are still cases where SOEs operate without a board for six months or even longer. This usually happens when the recruitment process for a new board is not launched in time or when a dismissed board is not promptly replaced. Such situations are incompatible with good governance practices,\u201d she notes.<\/p>\n

Early planning not only ensures continuity of board operations but also allows sufficient time for a thorough search for candidates, proper assessment of competency needs, and effective organisation of the recruitment process.<\/p>\n

A Broader Candidate Pool Means Stronger SOE Boards<\/strong><\/p>\n

The discussion also highlighted the role of executive search firms in forming SOE boards. In the recruitment of independent board members, these firms help define candidate requirements, conduct active searches to attract highly qualified professionals capable of contributing to a company\u2019s strategic objectives, assess candidates\u2019 competencies, and provide recommendations to the selection committee.<\/p>\n

\u201cExecutive search firms work daily with senior leadership recruitment, which means their experience and networks are invaluable in reaching professionals who are not actively seeking board or executive positions. The broader and stronger the candidate pool, the greater the likelihood of forming a board with a balanced mix of competencies, experience, and perspectives,\u201d emphasises J. Bagdonien\u0117.<\/p>\n

Participants also stressed the importance of strengthening cooperation between state institutions and executive search firms throughout the recruitment process. Effective candidate searches require not only clearly defined qualification requirements but also a comprehensive understanding of the specific SOE\u2019s strategic objectives, operational challenges, and expectations for the new board. This enables recruitment firms to identify and attract candidates who best match the company\u2019s needs.<\/p>\n

What Should Candidates Know?<\/strong><\/p>\n

The discussion also addressed the most common challenges faced by candidates shortlisted for SOE board positions.<\/p>\n

According to GCC experts, even candidates with exceptionally strong professional backgrounds do not always perform successfully during interviews with selection committees. One of the most common reasons is insufficient preparation.<\/p>\n

\u201cCandidates should thoroughly familiarise themselves with the specific SOE\u2019s operations, strategic objectives, financial situation, key challenges, and shareholder expectations. Selection committees expect not only a presentation of a candidate\u2019s experience but also their perspective on the value they could bring to the board, the changes they would initiate, and how they would contribute to achieving strategic goals,\u201d notes J. Bagdonien\u0117.<\/p>\n

Another common issue is a lack of understanding of the role of collegiate bodies. Candidates often confuse the responsibilities of a board with those of a company\u2019s CEO, even though the board\u2019s role is strategic and supervisory rather than operational.<\/p>\n

\u201cStrong professional competencies are essential, but personal qualities are equally important, especially the ability to work collaboratively. Board decisions are made collectively, so candidates must demonstrate not only expertise but also the ability to cooperate constructively and work towards shared outcomes,\u201d says J. Bagdonien\u0117.<\/p>\n

GCC Invites Professionals to Join the Governance Community<\/strong><\/p>\n

SOE board recruitment processes in Lithuania are currently conducted according to a government-approved framework aligned with international good governance principles. To help candidates better understand the recruitment process and expectations, GCC has prepared a detailed guide<\/a> on the selection of independent members of collegiate bodies.<\/p>\n

\u201cOver the past several years, Lithuania has developed a professional SOE board recruitment system that reflects international best practices. It is based on clear regulation, competency-based candidate assessment, the involvement of independent executive search firms, and participation of multiple institutions in decision-making. This model helps ensure that the most qualified professionals are appointed to collegiate bodies while maintaining a transparent, professional, and reliable process,\u201d says J. Bagdonien\u0117.<\/p>\n

GCC notes that new boards will be formed in at least ten SOEs and their subsidiaries during this and the coming year. Business leaders and professionals in finance, strategic planning, transformation, risk management, technology, and other fields are encouraged to participate in upcoming recruitment processes.<\/p>\n

Professionals interested in contributing their knowledge, experience, and business governance expertise to improving SOE governance are invited to register in GCC\u2019s governance experts database https:\/\/governance.lt\/kolegialus-organai\/#informavimas<\/a>. Those who register and express interest in serving on SOE boards will be informed about every new recruitment process initiated by an SOE and provided with detailed information on how to submit their candidacy for a specific collegiate body.<\/p>\n

Currently, Lithuania has 33 state-owned enterprises and 29 subsidiaries with a total of 50 collegiate bodies. Across SOE boards, there are 163 positions, and independent members account for nearly 70% of all board and supervisory board seats. All SOE board chairs are independent.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Governance Coordination Centre (GCC) initiated a discussion bringing together representatives of state ownership entities and Lithuania\u2019s leading executive search firms. The meeting focused on the most common challenges in the recruitment of collegiate bodies of state-owned enterprises (SOEs) and explored solutions to ensure an even more efficient, transparent, and professional board appointment process. The […]<\/p>\n","protected":false},"author":11,"featured_media":34013,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-34059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nThe Governance Coordination Centre initiated a discussion on strengthening recruitment processes for SOE boards - VKC | Valdymo koordinavimo centras<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/governance.lt\/en\/naujienos\/valdymo-koordinavimo-centras-inicijavo-diskusija-del-atranku-i-vvi-valdybas-stiprinimo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Governance Coordination Centre initiated a discussion on strengthening recruitment processes for SOE boards - VKC | Valdymo koordinavimo centras\" \/>\n<meta property=\"og:description\" content=\"The Governance Coordination Centre (GCC) initiated a discussion bringing together representatives of state ownership entities and Lithuania\u2019s leading executive search firms. The meeting focused on the most common challenges in the recruitment of collegiate bodies of state-owned enterprises (SOEs) and explored solutions to ensure an even more efficient, transparent, and professional board appointment process. 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