Signa’s bankruptcy makes it clear that top positions on supervisory boards do not always go to the best and independent candidates. In politics, personal networks count more for promotion to top positions than competencies, according to a study by Marketagent.
According to personnel advisor Josef Fritz, Alfred Gusenbauer is seen as an example of how things should not be. “As a member of the advisory board at Signa, he simultaneously charged over €22 million in fees for advisory services and did not necessarily put the well-being of the company first.” From the perspective of the whole, the activities of Signa founder René Benko were critically examined. The board, in which Benko himself consisted of well-known people, the advisory board apparently has not been there for years.
For 78 percent of the executives interviewed by market researcher Marketagent, independence from company directors and owners is the most important criterion when selecting supervisory boards. Integrity and personal decency follow immediately, while professional competence is only a priority for 66 percent. Only 4 percent of respondents think celebrities on the supervisory board are good…
In any case, incorrect decisions by supervisors are serious; for almost 90 percent of respondents, these have a lasting impact on the success of the company. Yet, when selecting these top positions, there is a large gap between expectations and reality: for as many as three-quarters of managers it is important to regularly check the composition and competence of the supervisory bodies, but this only takes place at less than one in three companies.
Personal relationships are crucial
But the political staff is even worse off. According to the survey, 91 percent of managers consider responsibility and decency to be the most important qualities. Nearly 77 percent of the total population also shares this opinion. For about two-thirds of them, personality and social skills are the desired qualities. Only one in three thinks it is important that politicians have built up good networks that help them get promoted and stay in power.
However, the reality is completely different: 74 percent of managers even believe that these networks are crucial for a political career. Slightly fewer of all Austrians, but still almost 52 percent, see this the same way. It’s not about what they can do, it’s about who they know. Less than 20 percent of the population attributes social skills, sense of responsibility, decency and professional experience to local politicians.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
