Because of the OECD, the government is changing the rules for electing heads of state-owned enterprises.

The Croatian government is set to introduce a new regulation aimed at streamlining the selection process for top executives and board members in state-owned enterprises. According to RTL Danas, the regulation has been long anticipated and represents one of the last prerequisites for Croatia’s accession to the Organisation for Economic Co-operation and Development (OECD). This move is part of a broader corporate governance reform that aims to increase transparency and reduce political influence in the appointment of these officials.

The reform was announced by the government several months ago, following the removal of former State Inspector Andrija Mikulić and several other directors. The prime minister, Andrej Plenković, expressed gratitude to the heads of five public companies, including HŽ Infrastruktura, Hrvatska Pošta, HZZO, Hrvatska Lutrija, and Odašiljač i Veze, who were temporarily appointed as acting managers until the new regulations take effect. These interim appointments have been made to ensure continuity while the new procedures are implemented.

According to the government's plan, the new regulation will establish stricter criteria for selecting board members and executives, ensuring a more transparent and merit-based process. Minister of Finance Tomislav Ćorić outlined the first package of implementing regulations during a press conference, emphasizing that the goal is to create a modern system of corporate governance for legal entities owned by the Republic of Croatia. He stated that the implementation of these regulations would begin once all necessary decisions and sub-legislative acts are finalized, with the expectation that the first executive boards selected under the new model could be formed by early 2027.

The reform focuses on 39 legal entities deemed particularly important for the national economy due to their significant impact on domestic economic activity. These entities generate approximately 11.4 billion euros in revenue annually, contributing significantly to Croatia's GDP. In addition to these entities, there are nine companies in majority state ownership and 96 in minority ownership, which will continue to be monitored by the Central European Restructuring and Sales Agency (CERP). Over 750 companies fall under the jurisdiction of local and regional self-governments.

The primary objective of the corporate governance reform is to transition from a decentralized to a centralized model of ownership rights. Under the new framework, the government, rather than individual ministries, will serve as the central authority overseeing these entities. This shift aims to enhance the professionalism of oversight and management bodies within these companies, strengthen the role of compliance functions, and ensure regular and standardized reporting on business activities. Additionally, measurable goals for company management and a unified policy on remuneration for board members and oversight bodies will be introduced.

During the presentation of the documents, Ćorić emphasized that the Ownership Policy for Legal Entities Owned by the Republic of Croatia serves as the foundational document of the reform, outlining the objectives the state seeks to achieve through its ownership in these entities of particular interest. The regulation on the selection and appointment of board members and executives outlines the technical procedures for implementing the law, which stipulates that the government will seek the best candidates for the boards of state-owned enterprises through a public competition based on the work of a commission established for this purpose.