Fixing tenure for PSU CEOs is a good move but certainly not good if the applicant is close to his retirement in the normal course by two years. The CEOs should have basic interest in the growth of the company optimally in a competitive environment. It is desirable to pick up CEOs in the age group of 45-50. The tenure should be such that they are given chance to understand the firm and compete and therefore should be for a period of five years. Second, selection of directors has become a farce in most PSUs and PSBs as it must have been felt that anyway their role will be minimal! If the norm of CEO selection at 45-50 is accepted it would leave enough scope to pick up the directors from an experienced pool of efficient ex-CEOs who will have scope to contribute significantly for the growth of the PSUs. This should apply even to the PSBs and the Insurance Companies in the Government fold.
- Yerram Raju
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