Questions and Answers
Managing Director (MD) Selection
Last Updated: June 18, 2012
- What is the process for selecting the Managing Director?
- What are the main differences between the 2011 and 2007 selection decisions?
- Who can nominate a candidate?
- When the Executive Board votes for a candidate to be the MD, is it done by individual country votes or by the Executive Director?
- Will there be a new Managing Director in place on July 1?
- What will be the term of office for the new Managing Director?
- What is the maximum age for a candidate to be appointed Managing Director?
- How does the selection process fit with the governance reforms of 2008 and 2010?
As outlined in the press release issued by the Executive Board on May 20, the procedure for selection of the MD will take place in an open, merit-based, and transparent manner. The process agreed by the Executive Board is as follows:
• The successful candidate will have a distinguished record in economic policy making at senior levels. He or she will have an outstanding professional background, will have demonstrated the managerial and diplomatic skills needed to lead a global institution, and will be a national of any of the Fund's members.
• An individual may be nominated by a Fund Governor or an Executive Director. The period for receiving nominations is from May 23 to June 10, 2011. All nominations will be communicated to the Fund’s Secretary, who will hold the names in confidence until the end of the nomination period.
• At the end of the nomination period, the Secretary will disclose to the Executive Board the names of those nominees who have confirmed their desire to be candidates. If the number of candidates exceeds three, the Executive Board will keep the names of these nominees in confidence until it has drawn up a shortlist of three candidates, taking into account the above candidate profile without geographical preferences. The Board’s objective is to complete the shortlisting process within seven days following the disclosure to the Board of the candidates.
• The shortlisting process will be implemented through indications of which candidates receive the most support among Directors, taking into account the Fund's weighted voting system. Although the Executive Board may adopt a shortlist by a majority of the votes cast, the objective of the Executive Board is to adopt a shortlist by consensus. The shortlist will be published.
• The Executive Board will meet with the shortlisted candidates (or all of the candidates if there were fewer than four) in Washington, D.C.
• Thereafter, the Executive Board will meet to discuss the strengths of the candidates and make a selection. Although the Executive Board may select a Managing Director by a majority of the votes cast, the objective of the Executive Board is to select the Managing Director by consensus.
• The Board has stated its objective to complete the selection process by June 30, 2011.
• Candidate Profile: The profile of the candidate is the same as in 2007 with one addition; for 2011, the Executive Board has stated that the candidate must also “have a firm commitment to, and an appreciation of, multilateral cooperation and will have a demonstrated capacity to be objective and impartial.”
• Nominations: As part of the commitment to an open and transparent process for selecting management, both Fund Governors and Executive Directors are eligible to nominate candidates. In 2007, and earlier, only Executive Directors could nominate candidates. In addition, the nomination period this round is shorter (three weeks, compared to six weeks in 2007).
• Process of shortlisting candidates and confidentiality has been clarified: In the event there are four or more candidates, the Board will draw up a shortlist of three, taking into account “the candidate profile without geographic preferences” before making a final selection based on the IMF’s weighted voting system. The names of nominees will be held in confidence by the Executive Board until the shortlist is determined.
An individual may be nominated for the position of Managing Director by a Fund Governor or an Executive Director during the nomination period, between May 23, 2011 and June 10, 2011.
Q. When the Executive Board votes for a candidate to be the MD, is it done by individual country votes or by the Executive Director?
The Managing Director is selected by the Fund’s 24 member Executive Board. Individual countries do not cast votes. Although the Executive Board may select a Managing Director by a majority of the votes cast, the objective of the Executive Board is to select the Managing Director by consensus.
The Executive Board has stated its objective to complete the selection process by June 30. However, it may take some time for him or her to assume duties at headquarters.
As in the past, and consistent with the IMF’s By-Laws, the Managing Director will be appointed for an initial 5-year term.
The IMF’s By-Laws state that at the time of the initial appointment as Managing Director, the person selected has to be less than 65 years old, and that a person cannot hold the position of Managing Director beyond her/his seventieth birthday.
The process of management selection has been discussed as part of the IMF governance reform. However, the 2008 and 2010 reforms focused mainly on other aspects of governance, including a significant shift of voting power to dynamic emerging markets, an increase in the voice of low-income countries in the IMF Executive Board through an increase in their basic votes, the move to an all-elected and more representative Executive Board, and a doubling of IMF quotas to about $755 billion.