The Central Bank of Nigeria, CBN, has pegged the maximum tenure of Managing Director of commercials and deposit money banks in the country at 12 years.
This is contained in a new guidelines released by the Godwin Emefiele-led CBN, on Friday.
The guidelines also specifies the tenure of Deputy Managing Director and Executive Directors of commercial banks.
For instance, the apex bank said in the guideline that the maximum tenure of any chief executives of banks should not exceed 12 years cumulatively.
The CBN said:, “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
“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.
“Non-Executive Directors (NEDs), with the exception of Independent Non-Executive Director (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 prior to 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.
“NEDs who exit from the Board of a bank either upon or prior to the expiration of his/her maximum tenure of 12 years (3 terms of 4years each), shall serve out a cooling-off period of 1 year before being eligible for appointment to the Board of Directors of any other DMB.
“The cumulative tenure limit of EDs/DMDs, MDs and NEDs across the banking industry is 20 years.”
Meanwhile, the magazine learnt that the latest CBN action, coming more than 20 years after it limited the tenure of chief executives of banks to 10 years, is meant to further strengthen government’s control on commercial banks as well as promoting global best practices in the nation’s financial service sector.
.
