No insurance CEO above age 67 to be allowed to hold post
Tuesday, 3 July 2007
The Department of Insurance has tightened rules on the appointment of chief executive officers for insurance companies saying that none above age 67 will be allowed to hold the post, according to bdnews24.com.
"The post will be considered vacant after CEOs cross 67. Companies have to appoint a new CEO within three months," according to a circular of the chief controller of insurance recently.
Industry players, however, opposed the move saying it would be tough to get experienced managing directors or CEOs if they were to comply with the rules because many companies were running their businesses with acting CEOs or MDs for shortage of skilled hands.
The rule would force eight MDs into retirement this year, said an executive committee member of Bangladesh Insurance Association.
"We have issued the directive to bring about dynamism and efficiency in the companies. We express the hope it will allow entry of fresh blood to the posts," Dr Mahfuzul Haque, chief controller of insurance, said.
He said there had been no maximum age limit for the post until his office took the initiative. In some cases, persons aged 68 to 70 years were holding the position of CEOs, he said.
The directive also said no CEO would be able to join or perform duties in the position without prior approval of the department of insurance. The same rule would be applicable to companies appointing new CEOs.
In case of renewal of job contracts, prior permission would also be needed, it said.
The directive said a person with a minimum bachelor's degree and age between 40 to 67 years would be allowed for appointment as CEO.
Shah Abdul Kashem, managing director of Asia Pacific General Insurance, said the sector would suffer for lack of efficient and experienced MDs if the directive prevailed.
"We feel that such a rule should not prevail as we have shortage of experienced and efficient hands," Kashem said.
Eight CEOs or MDs would be retired this year because of the new rule. The number would rise in the coming years, he said.
At present, there are 62 insurance companies, including two state-run ones, operating in Bangladesh.
"The post will be considered vacant after CEOs cross 67. Companies have to appoint a new CEO within three months," according to a circular of the chief controller of insurance recently.
Industry players, however, opposed the move saying it would be tough to get experienced managing directors or CEOs if they were to comply with the rules because many companies were running their businesses with acting CEOs or MDs for shortage of skilled hands.
The rule would force eight MDs into retirement this year, said an executive committee member of Bangladesh Insurance Association.
"We have issued the directive to bring about dynamism and efficiency in the companies. We express the hope it will allow entry of fresh blood to the posts," Dr Mahfuzul Haque, chief controller of insurance, said.
He said there had been no maximum age limit for the post until his office took the initiative. In some cases, persons aged 68 to 70 years were holding the position of CEOs, he said.
The directive also said no CEO would be able to join or perform duties in the position without prior approval of the department of insurance. The same rule would be applicable to companies appointing new CEOs.
In case of renewal of job contracts, prior permission would also be needed, it said.
The directive said a person with a minimum bachelor's degree and age between 40 to 67 years would be allowed for appointment as CEO.
Shah Abdul Kashem, managing director of Asia Pacific General Insurance, said the sector would suffer for lack of efficient and experienced MDs if the directive prevailed.
"We feel that such a rule should not prevail as we have shortage of experienced and efficient hands," Kashem said.
Eight CEOs or MDs would be retired this year because of the new rule. The number would rise in the coming years, he said.
At present, there are 62 insurance companies, including two state-run ones, operating in Bangladesh.