CEOs in Nigeria circumvent tenure limit through Holding Company structure

Despite the existence of a 10-year tenure limit for managing directors and chief executive officers (CEO) of banks and insurance companies in the country, some CEOs seem to have devised means around the policy through the Holding Company (HoldCo) structure to remain in control, LEADERSHIP can exclusively reveal. Initially, it was banks that started it but, currently, pockets of insurance firms have either adopted the same or are mooting the idea.

In this instance, findings revealed that mostly founding managing directors are transiting to head the HoldCos after the expiration of the 10-year tenure limit, which gives them more control of their investments. While some market observers see this as retaining the experience of these CEOs within the group, others feel this is about taking advantage of loopholes in the law that was not envisaged at the point of formulation. The Central Bank of Nigeria (CBN) introduced the Holding Company model in December 2011 via a circular to all bank

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nigeria National Petroleum Company Limited's Financial Statement Reveals Structural DefectsThe first post-restructuring financial statement of the Nigeria National Petroleum Company Limited (NNPCL) has exposed the structural defects of the oil company as it seems to thrive more on product trading and less as an upstream operator. On its face value, the company has grown its profit exponentially to N2.52 trillion ($2.7 trillion). But the performance is relatively low compared with its peers such as Petronas, Qatar Energy, Petrobras and Saudi Aramco.
Source: GuardianNigeria - 🏆 1. / 94 Read more »

Explosion in Ibadan: Company Responsible for Storing Explosives IdentifiedGovernor Seyi Makinde has identified the company responsible for storing the explosives that caused the explosion in Ibadan. He promises to bring the culprits to justice and ensure the welfare of the victims. An Emergency Operation Centre has been set up to oversee search and rescue efforts.
Source: PremiumTimesng - 🏆 3. / 78 Read more »