Hilmy Cader, CEO of MTI Consulting, has urged the government to place a stronger emphasis on the caliber and empowerment of CEOs in State-Owned Enterprises (SOEs) rather than creating undue focus on the appointment of Chairpersons. He believes the effectiveness of SOE leadership depends heavily on the performance of the CEOs, who are directly responsible for running the business and delivering results.
In a recent statement, Cader emphasized that while the government’s move to appoint top professionals of high integrity as Chairpersons is commendable, it is essential to recognize the non-executive nature of the role. “In most cases, the Chairperson’s responsibility is limited to strategic decision-making and ensuring corporate governance,” he said, underscoring that they should not become involved in the day-to-day operations of the business. Instead, “having an empowered, high-performing CEO should be the Chairperson’s Key Performance Indicator (KPI),” Cader argued.
He further warned that the current emphasis on Chairpersons risks creating unrealistic expectations about their ability to turn around SOEs. This could also lead to situations where non-executive Chairpersons may feel tempted to overstep into operational matters, which could undermine the governance structure.
MTI Consulting, the international strategy consultancy led by Cader, has completed 680 projects in 51 countries over the past 27 years. Through his vast experience, Cader highlights that the path to success for SOEs lies in focusing on the right leadership at the operational level, specifically the CEOs, who should be empowered to drive performance.
