By David Kabiyesi
Many bank executives are already losing their sleep after Central Bank issued a circular that stipulated that all executive and non executive directors must not exceed 20 years in service
The country’s apex bank posited that the new directive is to ensure that governance practices are enshrined in the banking system.
“The tenure of executive directors (ED), deputy managing directors (DMD), and managing directors (MDs) shall be in accordance with the terms of their engagement approved by the board of directors of banks, subject to a maximum tenure of ten (10) years,” the apex bank said.
“Where an executive who is a DMD becomes the MD/CEO of a bank or any other DMB before the end of his/her maximum tenure, the cumulative tenure of such executive shall not exceed twelve (12) years.
However, for an executive (ED) who becomes a DMD of a bank or any other DMB, his/her cumulative tenure as ED and DMD shall not exceed 10 years as non-executive directors (NEDs), except independent non-executive directors (INED), shall serve for a maximum period of twelve (12) years in a bank, broken into three terms of four years each.
“EDs, DMDs, and MDs who exit from the board of a bank either upon or before the expiration of his/her maximum tenure shall serve out a cooling-off period of 1 year before being eligible for appointment as a NED to the board of directors.