CBN Lifts 10-Year Limit on Tenure of Banks CEOs
The Central Bank of Nigeria (CBN) has lifted 10 years maximum allowable tenure for deposit money banks managing directors and chief executives (MD/CEOs), it said in its latest corporate governance guideline.
The new guideline shows that the tenure of the MD/CEO of a bank shall be in accordance with the terms of engagement with the bank but subject to a maximum period of twelve years.
This is a reversal of the apex bank 10 years cap that has been in operation over the years, a move that started under erstwhile CBN Governor, Sanusi Lamido Sanusi.
The guideline said the tenure of a deputy managing director. The executive director (DMD/ED) of a bank shall be in accordance with the terms of engagement with the bank but subject to a maximum period of twelve years limit.
“Where an executive director becomes a deputy managing director, a cumulative tenure of twelve years applies and shall not be extended”, the apex bank said in the guideline.
It also added that where a DMD/ED becomes an MD/CEO of the same bank, his/her previous tenure as DMD/ED is not included in computing his/her tenure as MD/CEO.
However, this is subject to a cumulative tenure limit provided in the guideline that provides that the cumulative tenure limit of directors (ED, DMD, MD, and NEDs) on the Board of the same bank is twenty-four (24) years.
The CBN explained that the cumulative period is calculated from the date of first appointment to the Board of the bank. #CBN Lifts 10-Year Limit on Tenure of Banks CEOs Nigerian Treasury Bills Yield Rises to 7%
