Committee Rejects Acting CEO Appointment Over Conflict of Interest Concerns
A committee reviewing appointments in government companies, chaired by retired Justice Shulamit Dotan, has decided not to approve Guy Levian's appointment as the acting CEO of Netivei Israel (Cross Israel). Levian has served as the acting CEO since the previous CEO, Dan Shenbach, left in May 2026. The committee found that while Levian meets the basic requirements for the role, his concurrent positions as the company's legal advisor and gatekeeper create a significant conflict of interest.
This decision means Levian's tenure as acting CEO ends immediately, leaving the company without a CEO. Levian, who has been the legal advisor and deputy legal director at Netivei Israel since June 2021, was appointed acting CEO by the company's board after Shenbach's resignation. The board had initially intended to appoint him temporarily until a permanent CEO was chosen, a process delayed by the Companies Authority's desire to merge Netivei Israel's operations with other entities.
The Dotan committee acknowledged Levian's legal qualifications but identified a structural issue: the CEO holds senior management and executive authority, while the legal advisor is meant to be an independent professional and gatekeeper. The committee argued that one person cannot simultaneously fulfill both roles without a conflict of interest. The board attempted to address this by splitting responsibilities, transferring some legal work to two internal lawyers and hiring an external firm, Goldfarb Gross Zeiligman, as legal counsel for the board. However, the committee heavily criticized this arrangement, questioning the selection process for the external firm, oversight, and dispute resolution mechanisms.
Further concerns were raised about Levian's prior employment at the same external firm and the company's insufficient examination of alternatives. The committee noted that the board did not adequately consider the risks of splitting the roles or explore appointing another deputy CEO. This decision aligns with the Companies Authority's policy requiring internal legal counsel in large government companies to act as a control mechanism and gatekeeper. The committee concluded that splitting the role for Levian's appointment could undermine the legal advisory system and create issues of reporting lines, authority, and conflicts of interest.
Ultimately, the Dotan committee determined that while Levian met legal prerequisites, the board did not give sufficient weight to the inherent difficulties of the appointment. The decision comes amid a push by the Companies Authority to merge Netivei Israel with another Ministry of Transport company, a plan facing strong opposition due to concerns about project delays and lack of economic benefit. This merger plan is currently awaiting post-election government decisions. A tender for a permanent CEO is also stalled due to the Companies Authority not engaging a recruitment firm, citing election period restrictions and guidance from the Attorney General.
