Room At The Top

Retirement policies need not always ensure the tenure of a chief executive. There are two versions, for example, explaining M G Bhides decision to step down as the chairman of Bank of India. One was that he was unable to get the support of his board, particularly directors appointed by the government and the RBI, on a number of issues. The other version is that Bank of India has been saddled with a large amount of bad loans that originated during his predecessors tenure. Bhide did not want to take the blame for these, so he decided to quit before the accounts come up for finalisation.

On the topic of resignations and retirement, R N Bose of Mukand Global Finance has already quit. He is heading for Nairobi where he will be the chief executive officer (CEO) of an American bank operating there. Rumours are that many more CEOs in the non-banking finance company sector are thinking of calling it a day following the RBIs tough regulations and the severe decline in business.