Two Israel Railways Directors Resign Over Interim CEO Appointment Dispute

Two directors of Israel Railways, retired judge Sarah Frish and Shlomit Geller, resigned in protest against the appointment of Yaakov Marciano as interim CEO. Marciano, who has served as the company's passenger VP for only seven months, was appointed following the previous interim CEO Avner Flor's elevation to chairman of the board. Both Frish and Geller opposed the decision, arguing Marciano is unfit for the CEO role. Frish stated in her resignation that she could not accept responsibility for a decision she deemed inappropriate for the company at this time, which passed by a 4-2 board vote.

Marciano, a retired IDF lieutenant colonel with extensive logistics experience, joined Israel Railways after nearly 30 years in the military and later served in the national fire and rescue authority. Despite reaching the final stage in the first CEO selection process, he was not appointed then. The transportation and finance ministries concluded none of the recent candidates were suitable, prompting a new search and tender for the CEO position.

The CEO role has been vacant since Shiko Zana's departure. Initially, Avi Almaliach acted as CEO but took extended leave in March, leading Flor to serve as interim CEO. Even after Almaliach's return, Flor remained interim CEO. Neither Flor nor Almaliach participated in the CEO selection processes. Israel Railways faces recruitment challenges due to the company's complexity, ongoing electrification projects, delays in opening new lines, and freight rail issues.

The Finance Ministry insists on appointing a professional CEO from the private sector rather than a political figure, but the search committee has struggled to find suitable candidates. On Monday, the appointments committee approved Flor's nomination to the board to serve as chairman, replacing Moshe Shimoni, who moved to head Mekorot. Flor is considered close to Transportation Minister Miri Regev.