Updated: January 4, 2022 10:54:15 am
The Insurance Regulatory and Development Authority of India has aligned the tenure of chief executives and directors of insurance companies with the banking sector set by the Reserve Bank of India.
The tenure of MDs, CEOs and whole-time directors (WTD) of an insurance company has been set at 15 years. As applicable to banks, the prescribed maximum age of these functionaries will be 70 years. The maximum age limit for chairman and non-executive directors has been fixed at 75 years.
The total tenure of a non-executive director (NED), continuously or otherwise, on the board of a bank, should not exceed 8 years. After completing 8 years on the board, the person may be considered for re-appointment only after a minimum gap of three years.
For WTDs, Managing Directors and CEOs, the remuneration structure will be divided between fixed pay, perquisites and variable pay. Fixed Pay should be reasonable and all the fixed items, including perquisites, should be treated as part of fixed pay, IRDAI said.
For non-executive directors (NEDs), apart from sitting fee and other expenses, it provides for payment of remuneration commensurate with an individual director’s responsibilities and demands on time, which are considered sufficient to attract qualified competent individuals, in the form of fixed remuneration. Such remuneration, however, should not exceed Rs 20 lakh per annum for each such director excluding Chairman. For the Chairman of the board, the remuneration may be decided by the Board of Directors of the respective company.
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