A year-long leadership void at Israel Aerospace Industries (IAI) may soon be over. Former Likud MK Silvan Shalom has reportedly agreed to serve as chairman, following a proposal from Defense Minister Israel Katz and Minister David Amsalem.
A Prolonged Stalemate
The appointment process has been stalled for over a year, intensifying after Amir Peretz resigned as chairman in November 2024. This delay created risks for IAI, including potential fines from the Securities and Exchange Commission and challenges to the tradability of its bonds on the Tel Aviv Stock Exchange.
Shalom’s nomination is expected to be fast-tracked, with forms submitted to the Government Companies Authority early this week and a presentation to the senior appointments review committee, headed by retired Judge Shulamit Dotan, potentially occurring mid-week. This accelerated timeline may be linked to the approaching Knesset election period, as legal restrictions limit senior appointments close to elections.
Concerns and Scrutiny
Shalom’s acceptance followed months of hesitation, reportedly due to existing business commitments with his consulting firm, SIMS International, and concerns about renewed public scrutiny regarding past allegations of sexual misconduct. Investigations by multiple Attorneys General – Yehuda Weinstein, Avichai Mandelblit, and Shai Nitzan – concluded without legal action, but the allegations continue to be discussed publicly.
The Association of Rape Crisis Centers in Israel criticized the nomination, stating it would “cast a heavy shadow on IAI.” However, Amsalem and Katz maintain Shalom is legally and professionally eligible, citing the lack of formal proceedings against him.
Further scrutiny may focus on Shalom’s past financial ties, specifically his relationship with the late Russian billionaire Vladimir Sloutsker. Between 2016 and 2019, Shalom received $100,000 monthly for consulting services from Sloutsker and filed a lawsuit in November 2024 for 7.8 million shekels in unpaid fees. This contrasts with his prospective IAI salary of approximately 100,000 shekels per month.
What’s Next?
If Shalom submits his nomination forms as expected, the Dotan Committee will review his candidacy. The committee’s decision will be a key determinant in resolving the leadership crisis at IAI. Should the appointment proceed, Shalom would bring significant political and professional experience to the role. However, if the committee raises concerns, the process could be further delayed, potentially requiring the ministers to justify the continued vacancy.
Frequently Asked Questions
How long has IAI been without a permanent chairman?
The position has been vacant since Amir Peretz stepped down in November 2024, creating a year-long leadership gap.
What concerns have been raised regarding Silvan Shalom’s nomination?
Concerns include past allegations of sexual misconduct, which, while not resulting in legal action, continue to be a subject of public discussion, and his previous financial relationship with Vladimir Sloutsker.
Why is there a sense of urgency to fill this position now?
The approaching Knesset election period and the potential for legal restrictions on appointments close to the election are contributing to the accelerated timeline.
Given the complexities surrounding this appointment, how might the outcome shape the future direction of Israel Aerospace Industries?
