International executive recruitment companies Spencer Stuart and Egon Zehnder submitted offers to select private sector CEOs for state owned companies in Romania, the country's Economy Ministry announced. After Friday's deadline for final offers, the week long evaluation process begins today ( Monday, January 23 ).

The winning company will create a short list of private sector candidates to become CEOs for Hidroelectrica, Oltchim, Electrica Furnizare and Compania Nationala Romarm.

This is the second bid initialed by the Romanian Economy Ministry, after an unsuccessful attempt in December last year, when there were no applicants. The first bid required a consortium of companies with a EUR 40 million turnover over the last three years and EUR 10 million in turnover for each of the consortium members. The bar was however lowered and the Ministry is no longer demanding EUR 10 million turnover for consortium members.

Spencer Stuart is a global executive recruitment firm founded in 1956 by Spencer Stuart and privately owned. It runs 53 offices in 29 countries and employs 1,250 people worldwide. Egon Zehnder, founded in 1964, has 64 international offices and exceeded a turnover of USD 600 million in 2010.

The first bid in the 'private CEO for state companies' program was won by executive recruitment firm Pedersen & Partners, in partnership with Roland Berger and Nestor Nestor Diculescu Pedersen (NNDKP) law firm. They drafted the task book for the executive recruitment companies that will select the CEOs.

Hidroelectrica, a company with a EUR 780 million turnover in 2010, has over 5,000 employees. In 2010, it posted a profit of around EUR 70 million. Oltchim posted losses – over EUR 50 million at a turnover exceeding EUR 300 million. The company has 3,500 employees. Electrica Furnizare has a yearly turnover of around EUR 910 million and over 1,000 employees. Romarm's turnover stood at some EUR 23 million in 2010.

Romania has made a pledge to the International Monetary Fund to hire private CEOs for state companies, which have been haemorrhaging cash in recent years.

editor@romania-insider.com

(photo source: Photoxpress.com)