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At ICICI Bank, CEOs need not call it a day
By siliconindia
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Monday, 23 August 2004, 19:30 IST
MUMBAI: The country's largest private bank has scrapped the retirement age for its chief executive officer.
The board of directors of ICICI Bank has decided that the age for superannuation will apply to all executive directors, except the CEO.
ICICI Banks present CEO, KV Kamath, will complete 57 years in December. His current tenure comes to an end in April 06. Kamath was appointed in May 1996 for a term of five years, after which he received a five-year extension. In case the board decides to further extend his term after May 06, they will not be constrained by the fact that he will be 60 years old in December 07.
The board took its view on the matter some months ago, said executive director Kalpana Morparia. Historically, ICICI the former parent which was merged with ICICI Bank never had an age-cap for the CEO.
However, ICICI was a financial institution and came under the Companies Act. The present decision applies to the banks CEO. ICICI Banks executive directors (EDs), however, have to retire earlier than EDs in public sector banks.
As against the retirement age of 60 years for an ED in a PSU bank, the superannuation age for ICICI Bank EDs is 58 years.
The senior-most among them, Lalita Gupte, joint managing director, is 55 years, while Ms Morparia, deputy managing director, is 54 years. u Most pvt bank CEOs retire at 65: P 6
The other two EDs Chanda Kochhar and Nachiket Mor have 16 and 18 years of service left respectively.
While the government policy is to retire CMDs of public sector banks at 60, most private banks stick to an age limit of 65 for CEOs. The maximum board term for the non-executive chairman is eight years.
Former chief executive of the erstwhile ICICI, N Vaghul, is currently the non-executive chairman of ICICI Bank. Vaghuls term comes to an end in '07.