In desperate need of a helmsman
Bank PKO, the top Polish lender, has given up on its most recent attempt to select a new CEO. This move has raised serious concerns about whether the state-controlled bank is heading in the right direction.
Since the resignation of Andrzej Podsiadło last fall, PKO has been without a stable leader. The bank recently stated that it planned to invite applicants who were exclusively selected by the supervisory board. PKO has declined to comment as to why it ended the current selection process, in which the top candidates were Andrzej Klesyk, head of Boston Consulting Group in Poland, and opposition deputy Maria Pasło-Winiewska.
Marek Jura, head of research at Bank Zachodni WBK said, "The decision is not very surprising." "The question remains whether the board will pick somebody with the required knowledge and skills or a candidate who is trusted by the government," he opined.
PKO can not remain leaderless for much longer, given the strong competition in Poland's banking sector. Experts say the bank has to make internal changes and fight bureaucracy to be able to compete with its foreign-owned competitors, UniCredit's Pekao and BPH. The two banks are expected to merge and overtake PKO BP as Poland's largest bank.
PKO, whose assets amount to over zł.100 billion, has made a number of failed attempts at appointing a new CEO. Former Prime Minister Kazimierz Marcinkiewicz was one of the previous candidates for the job, for one. The bank's shares are up eight percent this year, making it a laggard among WSE-listed banks, whose index has seen a 15-percent rise. (Reuters)
