Could Alhassan Andani’s retirement from Stanbic Bank signal an end to CEO’s serving for more than 12 years?
It appears the Bank of Ghana’s 3 term limit for Bank CEO’s and other financial institutions may have taken retroactive effect with the recent news of Alhassan Andani’s retirement.
The Outgoing Managing Director of Stanbic Bank Ghana officially retires on November 30, 2020, after 14 years of leading the South African Bank
He joined the Standard Bank Group in 2006 from Barclays Bank where he served as Deputy Managing Director.
The former President of the Ghana Association of Bankers was in 2018 recognized as the best CEO, Banking Sector, at the maiden edition of the Ghana Industry CEO Awards.
He is a well-respected banker within Ghana’s finance sector. His sterling banking career, spanning well over four decades has made him one of the most revered CEOs in the banking industry. Mr. Andani has become a thought leader, offering sterling direction and expertise when required, and has gained both local and international repute as an astute banker and financial expert.
The 59-year-old grandson of Naa Andani, former Dagbon king who was quite vocal and visible during the Banking sector crises may himself have been affected by the new banking sector reforms introduced by the Central bank in 2018 in a bid to address the corporate governance challenges that had bedeviled the sector in recent years.
A number of banks that were run by entrepreneurs were closed down and their licenses revoked by the Central Bank, most of whom had served for many years either as CEOs or Directors.
The regulator as part of the reforms sought to define the role of board members, their tenure and age-limit, and board structure among others.
Notable among the reforms is capping the tenure of Managing Director and CEO’s of regulated financial institutions at a maximum of 12 years, split into three terms not exceeding four years per term.
At the time, however, the regulator did not specify what will happen to existing board members who no longer qualify per the new directives and whether or not they will continue to retain their positions on the board. One of the questions on the minds of many was whether MD’s or CEO’s who had served 20 years and over will continue to serve in that capacity
Last year, Frank Adu Jnr, one of the longest-serving Bank MD’s retired from Cal Bank after 19 years as Managing Director, and news of Alhassan Andani’s retirement in November could bring an end to the culture of “security’ of tenure of Bank MD’s.
In the case of Nigeria, bank CEOs who had spent more than ten years were given 6 months to retire and a succession plan put in place.
The policy according to banking experts will further entrench corporate governance in the banks. Critics opposed to the legislation argued that recruitment and replacement of CEO’s have always been the preserve of the board and shareholders and questioned whether the central bank had the legal authority to interfere with the work of shareholders and the board