Arrow maker IAI nears controversial chairman appointment
Former Likud minister Silvan Shalom set to take the helm after a year-long leadership deadlock, raising questions over past allegations and public scrutiny.
The long-running crisis over the appointment of a chairman at Israel Aerospace Industries (IAI), which has persisted for more than a year, appears to be nearing resolution. Calcalist has learned that Minister and former Likud MK Silvan Shalom has agreed to serve as the candidate proposed by Defense Minister Israel Katz and the minister responsible for government companies, David Amsalem.
Shalom is expected to submit the nomination forms to the Government Companies Authority early this week, with his appointment to be presented to the senior appointments review committee, headed by retired Judge Shulamit Dotan. Sources indicate that the ministers and the Companies Authority intend to fast-track the appointment, and it could be presented to the Dotan Committee as soon as mid-week. The acceleration of the appointment may be linked to the approaching Knesset election period, as the law prohibits promoting senior candidates on the eve of elections. Failing to fill this critical post would require the ministers to justify leaving the position vacant for an extended period.
Katz and Amsalem first proposed Shalom for the role approximately four months ago, following a year-long political stalemate over the position. The deadlock intensified after former chairman Amir Peretz stepped down in November 2024, leaving IAI without a permanent leader. During this period, the company risked fines from the Securities and Exchange Commission, and delays in appointing external directors threatened the continued tradability of IAI’s bonds on the Tel Aviv Stock Exchange.
Shalom reportedly hesitated for months before accepting the nomination. Part of his reluctance was tied to his business commitments since leaving political life, including running SIMS International, a consulting firm he founded. More significantly, he was concerned about renewed public scrutiny stemming from past allegations of sexual misconduct. Although investigations by former Attorney General Yehuda Weinstein and later by Attorney General Avichai Mandelblit and State Attorney Shai Nitzan concluded that no legal action was warranted, the allegations continue to resurface in public discourse.
When Shalom’s name was first raised as a potential candidate for IAI chairman, the The Association of Rape Crisis Centers in Israel criticized the nomination, stating: “His appointment will cast a heavy shadow on IAI and send a sharp and painful message about the priority of women’s safety.” Amsalem and Katz, however, argue that because no proceedings were initiated, Shalom remains legally and professionally eligible for the role. One source involved in the process commented: “What argument can be made against someone against whom it was decided not to open an investigation, and certainly not to file an indictment?”
In addition, Shalom’s past financial ties will likely attract scrutiny. Sources estimate that his relationship with the late Russian billionaire Vladimir Sloutsker, who passed away three months ago, may require clarification. Between 2016 and 2019, Shalom received $100,000 per month for consulting services from Sloutsker, and in November 2024 he filed a lawsuit against him for 7.8 million shekels in unpaid fees. By contrast, his prospective salary at IAI is relatively modest, around 100,000 shekels per month.
Among stakeholders, there is broad agreement that Shalom possesses the necessary qualifications for the role. A trained accountant and lawyer, he has previously served as chairman of the Israel Electric Corporation and held numerous senior positions within the Likud, including Minister of Finance, Minister of Interior, Minister of Foreign Affairs, Minister of Infrastructure, and Deputy Minister of Defense.
