The recent appointments of executive leaders by two major corporate travel associations have created an uproar, drawing criticism for selection processes characterized as opaque and potentially skirting the bounds of propriety. They may even have shaken confidence in the groups' statuses as leading advocates for the industry.
Both the Association of Corporate Travel Executives and the Global Business Travel Association recently selected new executive directors. ACTE named then-board president Leigh Bochicchio to the role in May, less than a month after GBTA announced then-Allied Leadership Council president Scott Solombrino would take the helm as executive director and COO.
Both Bochicchio and Solombrino had long served on the boards of their respective organizations, but industry sources critical of the appointments told BTN the issue isn't with the hires coming from the groups' boards. Instead, sources raised questions about the associations' search processes, arguing that neither cast a wide-enough net in identifying and evaluating outside candidates. "Particularly with GBTA," said one past board member of the association, "there was no transparency around the process. If the bylaws allow that, the bylaws need to be changed."
GBTA chairman Bhart Sarin told The Company Dime that while his association did solicit external consulting, GBTA did not contract a firm for a full search process. Sarin argued that doing so was not an appropriate use of membership funds and that Solombrino's experience, which includes 30-plus years as president and CEO of Dav El/Boston Coach and co-founding the National Limousine Association, clearly made him the best candidate for the role.
Solombrino's experience notwithstanding, hiring executive leaders from within is a dicey proposition for professional associations, according to David Patt, head of Association Executive Management, an organizational consultancy. "Hiring from within happens a lot, and there is mixed opinion about whether or not it is a good idea. Those who support it claim an inside hire will be more knowledgeable about the industry and the organization and will have a shorter learning curve. Those who are critical say the hire shares all the biases of the industry and the organization and has established relationships with players and staff that may get in the way of objectivity." Patt counts himself "among the critics" of hiring internally for professional association leadership positions.
Solombrino's hiring raised eyebrows in terms of his outsize influence at GBTA, but ACTE's selection of Bochicchio appears to include its own wrinkle. According to sources with knowledge of the matter, Bochicchio sat on the hiring committee for a significant portion of the search and interview process before eventually being named to fill the role herself. Once named, her board president seat went to Lori O'Connell. O'Connell also served on the hiring committee and directly benefited from Bochicchio's selection, according to sources.
ACTE insisted the hiring process was conducted properly. "We solicited and evaluated a number of applications from both inside and outside the organization in accordance with ACTE's bylaws surrounding executive appointments," a spokesperson said. "We leveraged the expertise of a nonprofit recruiting firm to assist in the initial screening of all the candidates and to present a pool of the most qualified candidates, internal and external, to the search committee."
But critics said that even assuming the process was completely on the up-and-up, the mere appearance of a potential conflict of interest should have warranted more transparency. "When you're an association, you have a responsibility to your members to be very cognizant of the optics of the process," said a longtime industry veteran with knowledge of the matter and who took issue with the "eleventh-hour" nature of Bochicchio's appointment: "You're supposed to represent your membership, and in doing so, you should have the highest standards out there."
The source expressed particular disappointment over ACTE's decision to follow GBTA's lead in plucking its executive leader from within its own ranks, rather than taking the opportunity to make a powerful statement by hiring an outside candidate. Another industry veteran agreed: "It just doesn't look good from an industry leadership perspective. The process was suspect from beginning."
A prominent buyer member of both GBTA and ACTE said lack of
transparency causes problems beyond optics. "These organizations set the
stage for how business is conducted in the industry; they literally provide the
business environments with their events. Gaming that, in one way or another,
affects members' ability to have a good experience."
Ritchie Bros. Auctioneer travel manager Michelle Grant, who in the past has served on ACTE's Toronto conference
advisory board, voiced more faith in the organization. “I have every confidence
in the elected board,” she said. “There are processes, outlined on [the ACTE]
website, and I believe they follow them. I understand ACTE used an outside
recruiting firm that specializes in not for profit [organizations]. If people
have questions about that process, I would encourage them to reach out. [ACTE
officers] are all approachable people and really great, respected people, who
work hard on behalf of the industry.”
Others, however, reported to BTN that acrimony over the ACTE
and GBTA appointments has spread among industry stakeholders. One source said
the issue crops up "at the start of every conversation I have with any
travel industry colleague. Every place I go, it's all we talk about."
Another source mused about the importance of organizational
governance, but said they were "resigned" to the idea that both associations
"seemed to have an elite class making decisions." The source said
both ACTE and GBTA would benefit from enforcing term limits for board members.
"If you talk to individual board members about it, they actually agree
with you," the source said. "But then they never do anything about it."
The issue could affect attendance at industry events,
including the GBTA Convention 2019 in Chicago in early August. "That will
be the moment of truth," said one source. "If they can show that these
new appointments aren't controlling the agenda for the benefit of financial supporters,
then maybe it's not that big of a deal."
Another source noted that at least some buyers may not be
there to find out. They cited a push to boycott the August convention, instead
traveling to Chicago only to meet with suppliers and customers off-site.
Another source said, "We're all saying we have to vote with our attendance
at events."
One source acknowledged the potential for such an effort to
ding the associations. "The buyers are the core of these organizations.
Without them, you can't get the suppliers to support financially." On
whether a buyer boycott would be successful, the same source was skeptical: "I
don't see it."
Additional reporting by Elizabeth West. This is an expanded version of an article that appears in BTN's June 10 print publication. This version includes extended commentary from industry stakeholders, which became available after the print issue was sent to press.