Pvt bank CEOs likely to get 15-year tenure – RBI’s Draft Code on Governance

The tenure of chief executive officers (CEOs) of — be they promoters or professionals — may be capped at 15 years. This could be part of the revisit of the central bank’s draft code on governance, to which have given their responses.

The other change on the cards is to make CEOs part of the risk management committee (RMC) and an invitee to audit committee (AC) meetings. The chairman’s presence on key committees may be decided by the board, based on the expertise of the incumbent.

Having separate maximum tenures for promoter and professional CEOs at 10 years and 15 years, respectively, in the draft code was being viewed as unfair to the former. While no advanced economy has a cap on bank CEOs’ tenure, this argument may not pass muster with the RBI, and a cap of 15 years is the most likely outcome.

Please click on the following link to read in detail: RBI's draft code on governance: Pvt bank CEOs likely to get 15-year tenure

Ource: Business Standard

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