Leave a comment
Chuks Udo Okonta
The Director-General Chartered Insurance Institute of Nigeria (CIIN) Kola Ahmed, has called on proponents of tenure for managing directors to be careful in the handling of the initiative to forestall problems in the future.
He told Inspen that the initiative is delicate, hence should be managed appropriately for the wellbeing of companies.
He said though organisations need experienced individuals to thrive, there should also be room for younger persons to showcase their knowledge.
Ahmed called on top executives of organisations to groom those behind them so that they can take over from them, stressing that a situation where a managing director sits on a position for over twenty years, may deny a generation of potential leaders the opportunity to make their contributions.
Former Commissioner for Insurance Fola Daniel, said tenure for Managing Directors of Insurance and broking firms was proposed to ensure continuity and development of manpower.
He noted that a situation where Managing Directors fail to create opportunities for members of their organisations is inimical to the industry.
He said: “In the exposed 24 – page draft, only one line says chief executive officers should not spend more that 10 years, because there must be continuity and we must develop manpower. I know an insurance company where the CEO has been there for 25 years.
“In the past, in this country, I knew a managing director of a company, that the person next to him was an assistant manager. That is not good for the industry. Some of our managing directors are doing very well, but behind them, there is nobody. I think that is the philosophy behind limiting tenure.”
He noted that the commission will tailor the policy towards that of the Central Bank of Nigeria (CBN), stressing that there is no need for apprehension as the decision if considered will be good for the industry.