Dr. Adaora Umeoji, Deputy Managing Director of Zenith Bank Plc, has retired from the financial institution following the Central Bank of Nigeria’s recent announcement of new tenure limits for bank executives (CBN).
Her retirement went into effect on February 24, 2023.
Zenith Bank disclosed this in a notification to the Nigerian Exchange Limited signed by Michael Otu, its company secretary, and general counsel.
“We write to notify the Nigerian Exchange Limited and the investing public of Dame (Dr.) Adaora Umeoji’s retirement from the board of Zenith Bank Plc with effect from February 24, 2023,” the bank said.
“This follows the expiration of her tenure of office as Deputy Managing Director in line with CBN Circular No. FPR/DIR/PUB/CIR/001/070 dated February 24, 2023. The board wishes her success in her future endeavors.”
Last week, the CBN revised the regulatory requirements for executive management and non-executive directors (NEDs) of deposit money banks (DMBs) and financial holding companies (HoldCos).
The central bank explained in a circular to all banks dated February 24, 2023, titled “Re: Review of Tenure of Executive Management and Non-Executive Directors of Deposit Money Banks in Nigeria,” that the regulation was in accordance with the Code of Corporate Conduct for Banks and Discount Houses (Ref: FPR/DIR/CIR/GEN/01/004).
Mr. Chibuzo Efobi, Director, Financial Policy and Regulation Department, CBN, signed the letter.
The tenure of Executive Directors (EDs), Deputy Managing Directors (DMDs), and Managing Directors (MDs) shall be in accordance with the terms of their engagement approved by the board of directors of banks, subject to a maximum tenure of 10 years, according to the CBN.
Furthermore, the banking sector regulator stated that if a DMD becomes the MD/CEO of a bank or any other DMB before the end of his or her maximum tenure, such an executive’s cumulative tenure shall not exceed 12 years.
It added: “However, for an Executive Director (ED), who becomes a DMD of a bank or any other DMB, his or her cumulative tenure as ED and DMD shall not exceed 10 years.
NEDs, with the exception of Independent Non-executive Directors (INEDs), shall serve for a maximum period of 12 years in a bank broken into three terms of four years each.
“EDs, DMDs, and MDs who exit from the board of a bank either upon or prior to the expiration of their maximum tenure shall serve out a cooling-off period of one year before being eligible for appointment as a NED to the board of directors.
“NEDs who exit from the board of a bank either upon or prior to the expiration of their maximum tenure of 12 years (three terms of four years each) shall serve out a one-year cooling-off period before being eligible for appointment to the board of directors of any other DMB.
“The cumulative tenure limits of EDs, DMDs, MDs, and NEDs across the banking industry are 20 years. “Please be guided accordingly.”