According to reports from Daily trust newspaper, the Managing Directors of Wema and Sterling Bank may step down soon in accordance with the Central Bank of Nigeria (CBN) tenure limits.
Sterling Bank MD, Yemi Adeola was appointed in December 2007, while Mr Segun Oloketuyi was appointed MD Wema Bank in 2009. prior to that, he had served as acting MD of Bond Bank.
Why did the CBN enact the law ?
The apex bank under the headship of Mallam Sanusi Lamido Sanusi decided to limit the tenure of bank MDs to ten years in order to enhance corporate governance and succession planning. MDs who had served for a period of 10 years as at July 31st 2010 were asked to step down.
The 10 year period included time spent as acting MD prior to the 2005 banking consolidation exercise. The bank MDs were then given a cooling off period of 4 years after which they could return as Chairmen.
Two of the bankers affected by the policy Tony Elumelu and Jim Ovia have since returned as Chairmen of the banks they worked in. The policy came on the heels of a banking crisis that saw the CBN rescuing several banks, some of which were run by MDs that doubled as majority stakeholders.
What happens to the banks?
The banks will most likely appoint an interim MD subject to confirmation by the CBN. Aside that, normal operations will continue, as the banks have their boards in place. For banks with a clear succession plan, the DMD or other members of the executive management typically get appointed as MD’s .