In the last two weeks the media have been awash with the return of the duo of
The first phase saw men like
Before the introduction of the tenured appointment for bank executives and in the dispensation of modern banking in
These were men, who the older and traditional bankers that relied solely on operational procedures described as cow boy bankers. They were so referred to because they imbibed the American tradition of flamboyance, speed in service delivery, jumbo pay packages for employee, luxury cars and expressive offices. It was the belief then that many of the banks led by them would fail and they would crash out of the system.
True to type many did not survive consolidation and the Sanusi Lamido Sanusi's tsunami. But the interesting thing was that many of them were not just CEOs, they were owner managers. They persisted and brought the best into the banking system.
While Elumelu and Ovia were said to have spent over 10 years, Akinfemiwa attained 10 years in November last 2009. The bankers were not asked to leave the industry on account of non performance, declining productivity but a policy directive aimed at addressing some general industry problems.
According to the CBN then this was actually done to enthrone good corporate governance in the banks, to institutionalise the arrangement of the appointment of CEOs in banks, to see to it that banks put in place a good succession plan programme and also, more importantly, to ensure that institutions are not personalised,".
He said all CEOs who would have served for 10 years by
The governors, deputy governors of the Central Bank of
The department directors of CBN and that of the NDIC shall not be eligible for appointment in any capacity in banks and their subsidiaries under the supervision of the CBN and the NDIC until after the expiration of three years of their exit either from the CBN or the NDIC."
CBN said the appointment of bank CEOs as approved by the board must also be ratified at the annual general meeting and such term of appointment in the first instance shall not exceed five years which is renewable for another five years provided the cumulative does not exceed ten years.
It had said that "Any person who has served as CEO for the maximum tenure in a bank shall not qualify for appointment in his former bank or subsidiaries in any capacity until after a period of three years after the expiration of his tenure as CEO.
Four years after the policy became effective, the first victims of the policy many saw as very harsh having met the mandatory three years outside the banks have returned. First it was
Do these men of yester year's fame in the banking industry have anything new to contribute to the industry? Or are they in to play the catch up and remain relevant in the scheme of things in
Though, this time they are coming as non Executive Directors. Again what this had shown us is that Sanusi came up with hidden agenda and there was nothing wrong with some of the banks' chief executives who were sacked. The success of these people in their private businesses shows that they are good managers. Now that they are back to the system, they should not relax and they should prove to the government that the banking sector is sound and those whose banks were confiscated in the past should regain them.
Also, some banks executives that were relieved of their duty without tangible reason should be allowed to come bank.
Elumelu will bring his turnaround experience in Transcorp. Transcorp were turnaround when Elemelu came on Board, the company has started paying dividend to shareholders. In fact, both Elemelu and Ovia have done well in their private businesses since they left the banking sector. We welcome them back to the system.
We welcome them back to the system. It is a good thing that the big lions are returning to the banking system. We are really happy for their contribution in the past and hope they will bring more progress to the banks.
Insurance operators have been reacting to the trend where former managing directors of banks are returning to their former banks as chairmen.
Reacting to the development, Mr.
According to Adetimehin, shareholders of such companies must also play the role of watchdogs to keep the chairman in check so that he does not operate beyond his mandate or act like a demigod. Adetimehin said that such banks can only be accorded respect if the board of directors, management and shareholders work hand in hand and in accordance with the rule of the game.
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