Questions and Answers
Managing Director (MD) Selection
Last Updated: January 21, 2016
- What is the process for selecting the Managing Director?
- How does this selection process compare to previous rounds?
- 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’s voting power?
- When will the Managing Director assume his or her duties?
- What is the term of office of a Managing Director?
- What is the maximum age for a candidate to be appointed Managing Director?
As outlined in the press release issued by the Executive Board on January 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 January 21 to February 10, 2016. 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 March 3, 2016.
Candidate Profile: The candidate profile is the same as in 2011. As set out in the Board decision, the successful candidate will meet the following requirements:
- Have a distinguished record in economic policymaking at senior levels.
- 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 IMF’s member countries.
- As chief of the IMF’s staff and as Chairman of the Executive Board, (s)he will be capable of providing strategic vision for the work of a high quality, diverse, and dedicated staff; and will be firmly committed to advancing the goals of the IMF by building consensus on key policy and institutional issues, including through close collaboration with the Executive Board, under whose direction (s)he will fulfill his or her responsibilities.
- Have a proven understanding of the IMF and the policy challenges facing the Fund’s diverse global membership. (S)he will have a firm commitment to, and an appreciation of, multilateral cooperation and will have a demonstrated capacity to be objective and impartial. (S)he will also be an effective communicator.
Nominations: As part of the commitment to an open and transparent process for selecting management, since 2011 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 in the 2016 round is slightly longer (3 weeks compared to 17 days in 2011), aligning both the nomination and selection periods to three weeks for each.
Process of shortlisting candidates: The shortlisting process is the same as in the 2011 round. 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 January 21, 2016 and February 10, 2016.
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’s voting power?
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 March 3, 2016. Accordingly, it is expected that the next Managing Director will be announced by that date. The current Managing Director’s term ends on July 4, 2016 and it is expected that the next Managing Director’s term will begin on July 5, 2016.
As in the past, and consistent with the IMF’s By-Laws, the contract of a Managing Director is for a term of five years and may be renewed for the same term or for a shorter 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.