For the first time in Oschadbank's history, its management is to undergo an independent assessment of competencies in accordance with international standards
In June 2019, the new Supervisory Board of six independent directors and three government representatives started to work in Oschadbank. In accordance with corporate governance principles, once Members of the Supervisory Board have been appointed, it is a common practice of good corporate governance to immediately assess the executive management’s fitness for purpose to ensure strong and competent leadership and management team are in place to realize the strategic initiatives. This assessment is obligatory even if the management's contracts have not yet expired.
At the Supervisory Board meeting held on 20 June 2019 and attended by representatives of the shareholder and the NBU, it was decided to assess the Chairman and Members of the Management Board of Oschadbank against competency requirements approved by the Supervisory Board. For this independent assessment of the Oschadbank's management, the Supervisory Board engaged Pedersen & Partners, an international recruitment company. The company is well acquainted with the strategy and structure of the bank, has international experience in providing services on selection of the bank's management personnel and has previously passed a competitive selection process in accordance with the Law of Ukraine "On Banks and Banking".
"For the first time, HR procedures common for the assessment of top management of leading international companies are applied to the management of a state bank. Such assessment format is generally accepted in terms of methodology, level of detail, depth and unbiased conclusions. It includes all parameters, both professional, qualification, leadership and psychological. The perimeter of independent assessment includes all Members of the Bank's Management Board and key managers. Andriy Pyshnyy, Chairman of the Management Board of Oschadbank, was the first to go through this procedure," said Oleksii Reznikov, an independent Member of the Supervisory Board of Oschadbank, Chairman of Nomination and Remuneration Committee.
The results of the assessment were considered at the in-person meeting of the Bank's Supervisory Board on 25 July 2019, where all Members of the Supervisory Board and representatives of the NBU were present. Members of the Supervisory Board noted that it was highly professional and efficient work of Andriy Pyshnyy, carried out from March 2014 to date, that led to fundamental positive changes in the bank's activities and services, creating a positive image among the population and partners, as well as resumed stable operations and made it possible to follow a clear path of development as a universal financial institution.
"At its first and second meetings, the Supervisory Board discussed and determined its approach to assess the bank's management, approved the competency requirements to be met by the Chairman and Members of the Management Board of the state bank, taking into account requirements of the current legislation and the regulator. The procedure for assessing the bank's top management was also approved. To ensure the most transparent, professional and quality assessment process according to international standards and tools, an international company was engaged. Based on the assessment results, a decision was made that Andriy Pyshnyy fully complies with the approved competency requirements and his professional suitability was confirmed. Oschadbank's Management Board headed by Andriy Pyshnyy has done much to transform Oschadbank. We need to continue to follow this path," said Chairman of the Supervisory Board Sevki Acuner elected from among its independent members.
Based on the findings, the Supervisory Board decided to confirm the professional suitability and competence of the Chairman of the Management Board, and to extend his authorities for the next five years. Today, the next stage of the assessment procedure (as approved by the Supervisory Board) is ongoing – the assessment of Oschadbank's Management Board members and key managers. Oschadbank's development strategy for 2018-2022 was agreed by the CMU in February 2018.
Due to the dissemination of incorrect information about "an appointment out of competition", please note that the current legislation does not provide for a competition if there are valid contracts with the management.