Most CEO changes that have occurred early this year targeted the banking and cosmetics sectors, where top-ranking companies decided to replace their top executives.
“Most of the top executives that were replaced in the first part of the year ended their terms in office. Usually, an expat’s term in office is four years, with the possibility of a one-year extension,” says Daniela Necefor, managing partner of executive search company Total Business Solutions (TBS). She says in general when a term in office is extended, expats have to take packages offered to local executives, which are significantly lower.
One of the latest top management changes has taken place within BCR, the largest local bank by assets (which amount to EUR16.5 billion in 2011), when UK-born Dominic Bruynseels left the bank after four years on the Romanian market.
The position of CEO of BCR was supposed to be taken over by Czech-born Tomas Spurny on April 1, but the transfer of power has been put off amid ongoing authorization procedures by the central bank.
BRD, the second-largest bank by assets, will also see a CEO change at the beginning of May, when Guy Poupet ends his first term in office. He will be replaced, after the central bank’s approval, by Alexandre Maymat.
“In general, executives’ terms are shorter because shareholders’ expectations are higher, given that financial results are not very good, not measuring up to expectations,” says Sorin Popa, managing partner of executive search firm Accord Group Romania.
But the most surprising move in the banking sector was the departure of Robert Rekkers from Banca Transilvania.
He is one of the best-known bankers on the market, who ran the bank for nine years. Banca Transilvania has not announced who will replace him, yet, but the interim CEO is Peter Franklin, the representative in the board of directors of the EBRD, the bank’s main shareholder.
“As a rule, expats appointed as CEOs of top-ranking companies on the market receive net salaries of at least EUR10,000 per month, to which a benefit package is added, which includes house, car, child schooling, etc,” Necefor added.
In the cosmetics sector, Oriflame, Amway, L’Oreal and Beiersdorf (producer of Nivea) have changed their country manager. The new heads were task with developing the businesses they took over. The cosmetics market has fallen by up to 10% in the last three years.
“Habits are not the same as in the past, when expats were staying for 4-5 years and some of them remained in Romania after the end of their terms. Now the shareholders set short and medium-term goals because it is all about cash-flow and things happen much too fast,” Popa added.
Another major change to be expected is that of the CEO of Rompetrol, after current CEO Sadoukhas Meraliyev steps down on June 1, but will stay on as member of the Board of Directors. Meraliyev has been head of Rompetrol since July 2009 and was appointed a month after Dinu Patriciu sold to KazMunaiGaz the last shares he still had in the Rompetrol Group, and the Kazakh company became the sole shareholder.
The packages of the new executives are the same as in the past, but managers’ preferences have changed, they don’t want as many perks, bur would rather have them turned into cash.
(English version by Daniela Stoican) The list of managers changed since the beginning of this year is as follows:| CEO | When they were/will be appointed | Company | Who they replace |
| Alexandre Maymat | May | BRD – SocGen | Guy Poupet |
| Tomas Spurny | April | BCR | Dominic Bruynseels |
| Paolo Mariani | April | Italo Romena Bank | Giulio Simonelli |
| Dieter Schulz | April | Danone | Stephane Batoux |
| Stephane Batoux | March | Coca-Cola HBC | Michalis Imellos (interim) |
| Aurelia Cionga | March | Raiffeisen Banca pentru Locuinte | Andrei Stamatian |
| George Muscoiu | March | Medlife | Regional manager – a newly-established position |
| Karolina Georgieva | March | Oriflame | Pavlina Marinova |
| Bedros Kalfayan | March | Beiersdorf | Erik Hageleit |
| Renato Keller | March | Bayer Romania | Andreas Damaske |
| Ioana Enache | February | Amway | George Popescu |
| Gemma Webb | February | British American Tobacco | David Waterfield |
| Daniela Budurea | February | Western Union | Alexandru Badulescu |
| Bogdan Pirvu | February | Fata Asigurari | Diego de Gennaro |
| Florentina Taudor | February | Renania | Orlando Szasz |
| Sonia Artinian | January | Lafarge Romania | Philippe Questiaux |
| Sorin Nichita | ianuarie | Rompetrol Gas | Toma Veron |
| Stéphane Barbazan | January | Novotel | Philippe Drivon |
| Mihut Craciun | January | Supreme Chocolat | Jihad Jabra |
| Gilles Antoine | January | L’Oreal | Richard Matalon |
| Ionut Patrahau | January | Regina Maria | Tim Elsigood |
| Peter Franklin (interim) | January | Banca Transilvania | Robert Rekkers |
| – | Rompetrol | Saduokhas Meraliyev | |
| – | Bucharest Stock Exchange | Valentin Ionescu | |
| – | Metro Cash&Carry | Delia Nica |