The Bank of Canada has announced the appointment of a new Deputy Governor following an open search process involving an outside headhunter.
When launching the search, the Bank said:
The Board of Directors has formed a selection committee to conduct the search and selection process, with the assistance of global executive recruiting firm Boyden. Public advertisements for the Deputy Governor position have been published on the Bank's web site, as well as in The Globe & Mail and La Presse newspapers, and the on-line edition of The Economist.
The practice of employing outside consultants or running an open, public tender to hire top central bankers has recently spread in English-speaking countries.
U.K. Chancellor of the Exchequer George Osborne earlier in February also advertised for the position of Deputy Governor of the Bank of England to replace outgoing Andrew Bailey.
Quite different practice from what I witness in a number of countries that are frequently visit, where central bankers seem to secure their jobs thanks to their political connections or affiliations, rather than on merit.
I dare to say the candidates selected via an open search will enjoy greater reputation, be more independent-minded and stronger to handle the pressures of their positions than central bankers who owe their jobs to deals made behind closed doors.