Lex localis - Journal of Local Self-Government_11(1)_January

592 L EX LOCALIS - J OURNAL OF L OCAL S ELF -G OVERNMENT R. Gabršek, M. Ferjan, I. Podbregar, O. Arsenijević & P. Šprajc: CEO Background and Company Performance – Evidence from the Cohesion Regions of Eastern and Western Slovenia 1 Introduction The study was conducted in Slovenia, which is divided into three levels according to the Nomenclature of Territorial Units for Statistics (NUTS). At NUTS 1 level, Slovenia acts as a single unit; at NUTS 2 level, the country is divided into two cohesion regions – Eastern Slovenia and Western Slovenia; at NUTS 3 level, it is divided into 12 statistical regions. NUTS is the common European statistical classification of territorial units and was confirmed by the EU parliament on 26 May 2003 (Statistical Office of the RS, 2017). The Eastern cohesion region has eight statistical regions and the Western cohesion region four. Table 1 shows the subdivision of cohesion and statistical regions and per capital GDP. The Eastern cohesion region is considered significantly less developed than the Western cohesion region, but even the former remains below the average of the European Union (Statistical Office of the RS, 2015). Table 1 : Gross domestic product by statistical and cohesion regions, Slovenia, 2015 Per capita GDP in EUR Per capita GDP in EUR Eastern cohesion region 15,493 Western cohesion region 22,296 Mura 12,437 Central Slovenia 26,418 Drava 15,456 Upper Carniola 16,437 Carinthia 15,103 Gorizia 17,135 Savinja 17,225 Coastal–Karst 18,738 Central Sava 10,060 Lower Sava 15,614 Southeast Slovenia 17,941 Inner Carniola– Karst 13,792 Source: Statistical Office of the Republic of Slovenia Companies are an important factor of development in the regions and consequently affect social and economic conditions and of course contribute to their employment rates. Among researchers a general consensus has existed for