Government Raises Maximum Tenure Of PSU CEOS To 10 Years
. The decision of the government will help banks to retain the talent who rise to the post of full-time directors at a very early age of 45-50 years
The maximum tenure of CEO and MD of public sector banks has been increased to 10 years maximum. a move that will help the government retain the best talent in the banking sector. As per a government notification dated November 17, 2022, the term for the appointment has been extended to 10 years, from the earlier 5 years, subject to the superannuation age of 60 years, as per an amendment called Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022. The decision of the government will help banks to retain the talent who rise to the post of full-time directors at a very early age of 45-50 years. The said amendment will benefit them.
Earlier, the MD of a public sector undertaking was eligible for a maximum tenure of 5 years or 60 years whichever came earlier. This is also applicable to whole-time directors of all Central Public Sector Enterprises (CPSEs). The central government will have the right to terminate the term of office of a full-time director, including the MD, any time before the expiry of the term specified, by giving him a notice of minimum of three months.