Leadership Tensions Emerge within Austria's State Holding ÖBAG
Internal dynamics within Austria's state holding company, ÖBAG, have recently come to light as senior supervisory board members advocated for an early succession process to replace the current CEO, Edith Hlawati. This move, occurring more than a year ahead of Hlawati's contract expiration, has drawn attention to underlying strategic and political considerations shaping the direction of the state-owned enterprise.
The suggestion to begin the search for a successor was presented by key supervisory board figures during a high-level meeting with Austria's Minister for Economic Affairs. Their rationale centered on the need for generational change and the demand for fresh leadership to address upcoming challenges facing the holding company. However, the economic minister rejected the proposal, expressing confidence in Hlawati's leadership and affirming that the search process would commence as scheduled in mid-2026.
ÖBAG's leadership and its governance structure have long been the subject of scrutiny due to the company's management of significant state interests in major Austrian corporations, including OMV, Post, Telekom Austria, Bundesimmobiliengesellschaft, and Casinos Austria. The company's CEO, Edith Hlawati, has previously faced criticism for adhering closely to the legal framework governing the organization, focusing on compliance and portfolio management as stipulated by law. While some observers argue this approach prioritizes regulatory adherence over proactive industrial strategy, others credit it with reducing political interference, allowing the portfolio companies greater autonomy.
The push for an early leadership change appears to be interwoven with broader strategic shifts under discussion for ÖBAG. The Economic Affairs Ministry is currently working with external consultants to develop a new location and industry strategy for the holding company. Discussions include the potential expansion of ÖBAG's activities, such as acquiring new investments or divesting from existing ones, changes which would require legislative amendments.
Some stakeholders argue that the early succession initiative is driven not by disagreements with Hlawati's performance, but by the desire to ensure a well-organized transition. Nevertheless, the timing and motivation remain atypical and have sparked speculation regarding strategic interests at play.
One significant area of interest is the future of OMV, one of Austria's largest industrial companies and a central holding in the ÖBAG portfolio. OMV's current CEO, Alfred Stern, is expected to step down in mid-2026, prompting a crucial leadership search. The outcome of this process is likely to influence the company's ongoing transformation away from traditional oil and gas operations--a shift that has generated internal controversy and regional political debate, particularly in Lower Austria, where OMV's operations are a key economic factor.
Recent developments at OMV have seen leadership changes and strategic disputes, with some stakeholders advocating for a return to traditional approaches and others supporting the ongoing transition. The connection between these debates and the push for leadership change at ÖBAG has prompted observers to consider whether efforts are being made to align leadership appointments at both organizations with broader strategic or regional interests.
Despite the current tensions, the Economic Affairs Ministry has reaffirmed its support for the existing CEO and emphasized that any transition will follow established timelines. The process for identifying a successor to Hlawati is set to begin in the summer of 2026, coinciding with wider discussions about the future direction of Austria's state holdings and their role in national industrial policy.