Dr Adaora Umeoji, Deputy Managing Director at Zenith Bank Plc, has retired from the financial institution in adherence to the new tenure limits for bank executives recently released by the Central Bank of Nigeria (CBN).
Her retirement became effective on February 24th, 2023. Zenith Bank disclosed this in a notification to the Nigerian Exchange Limited signed by its Company Secretary/General Counsel, Michael Otu.
Adaora Umeoji put in many years to the service of Zenith Bank Photo credit: @zenith Source: Facebook
The bank's notification reads:
Full text “We write to notify the Nigerian Exchange Limited and the investing public of the retirement of Dame (Dr) Adaora Umeoji from the board of Zenith Bank Plc with effect from February 24, 2023.
“This follows the expiration of her tenure of office as Deputy Managing Director in line with the CBN circular No. FPR/DIR/PUB/CIR/001/070 dated February 24, 2023.
The board wishes her success in her future endeavours.”
Why are banks directors resigning On February 24th, 2023, the CBN issued a circular that Executive Directors (EDs), Deputy Managing Directors (DMDs) and Managing Directors (MDs) can only serve for a maximum of 10 years, subject to the terms of their engagement approved by the board of directors of banks.
Part of CBN's circular reads: "If an executive, who is a DMD, becomes the MD/CEO of a bank before the end of their maximum tenure, their cumulative tenure shall not exceed 12 years.
"However, for an ED who becomes a DMD, their cumulative tenure as ED and DMD shall not exceed 10 years. Non-Executive Directors (NEDs) can serve for a maximum period of 12 years in a bank, broken into three terms of four years each, except for Independent Non-executive Directors (INEDs)."
Among other guidelines, the CBN noted that the cumulative tenure limit of EDs/DMDs/MDs and NEDs across the banking industry is 20 years. Umeoji has over 20 years of cognate banking experience, which is why she was affected.