Whenever possible you should have your current supervisor as a recommender. If you don't use that individual, the school may suspect there is a problem with your performance. There are acceptable reasons for using a former, rather than a current supervisor: concern that management's knowing you are going back to school will hurt your chances for promotions or assignments; concern that it might jeopardize your job entirely; and concern that you have not worked for your current supervisor long enough for him/her to properly assess your potential. If these apply, you need to explain them carefull in your application.
Remember, the point of recommendations is to demonstrate to the admissions committee that you have ability and potential as a manager and leader. Do not use an individual who barely knows you, no matter how important that individual is or how impressive his or her title. Schools often ask very specific questions about performance and ability. If your recommender has to reply "don't know", the reliability of the recommendation will be seriously undermined, as will your judgment.
In addition to your supervisor, colleagues, vendors or clients, and people you have worked with extensively outside of work (e.g. executives with a not-for-profit for whom you have led major initiatives) are good options. The key criteria are CAN and WILL this person respond intelligently and in depth to the questions on the form.
Tani Wolff