‘Bifurcate bank CMD post, beef up board power to improve governance’

............Boards have to be beefed up by improving the board power. We have been recommending bifurcating the CMD position — the chairman who would be non-executive board member and a managing director who is the executive who oversees the operations. The finance ministry is a long distance from the bank and so you need a decentralised oversight process for it to work better. So strengthening the board is important. Managing directors should have longer tenures of three to five years. And finally, if you want the private sector talent to come into the public sector, the salary differentials should narrow. There is still some value in working with the public sector – the hire and fire system is less prevalent in the public sector. But it cannot be............

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