TA Aviation Will Remain Without a Permanent Chair: Appeal Against Gabby Srooshi’s Disqualification Rejected

Background of the Decision

The committee for reviewing appointments in the Government Companies Authority, led by retired judge Shulamit Dotan, has today (Monday) dismissed the appeal from Defense Minister Israel Katz regarding the disqualification of Professor Gabby Srooshi for the role of Chair of Israel Aerospace Industries (IAI). As a result, IAI will continue to operate without a permanent chair, an interim situation anticipated to incur a financial penalty of 1.5 million shekels over six months without such leadership.

Previous Developments

The board’s selection of Srooshi occurred in March, immediately following the withdrawal of Gilad Erdan, the candidate supported by the minister responsible for government companies, Dudi Amsalem. This change arose under the assumption that Srooshi would conclude his second term as a director in July. Prior to this, the terms of Adi Barshadsky, serving as the chair of the Audit Committee, concluded last week, and Hava Schechter’s term, as chair of the Finance Committee, is due to end in June.

Disqualification Process

The committee rejected Srooshi’s candidacy, which was particularly unexpected due to his failure to participate in the preliminary process conducted by Dotan’s committee. On the morning of his selection, the Company Authority informed board members that Dotan’s committee would not approve the appointment.

According to the Authority’s professional stance, there must be due consideration of each candidate’s realistic term duration. Specifically, the Authority’s policy stipulates that extending a candidate’s term to a third term is rare and contingent on exceptional circumstances. As of the time of this decision, no position had been established by the ministers regarding their wishes in this matter.

After his appointment by the board, Srooshi was required to approach the committee, which subsequently ruled him ineligible for not meeting the required qualifications. This marks the second time Srooshi has faced disqualification for a senior position within IAI. As reported earlier by Globes, a committee convened in 2018, headed by then-chair Harel Loker, had also rejected his candidacy for the role of CEO of the company. The committee’s rationale included Srooshi’s prior position reporting to a company CEO instead of the overarching CEO of the parent company, Elbit.

Conclusion

The ongoing absence of a confirmed chair for IAI raises concerns about the operational and financial implications for the defense industry giant in Israel. As developments unfold, the government and IAI stakeholders will need to navigate the implications of this prolonged vacancy in leadership