Gold Silver Reports (GSR) – Axis Bank’s Shikha Sharma Wants New Term Cut Short – Sharma has asked the board to reconsider the term of her reappointment, a statement to the exchanges said. The bank’s board has accepted her request, subject to the approval of the RBI, the statement added.
Sharma was keen to exit when her term ended in June and the board, following discussions, decided on a December exit in the interest of a smooth transition, a senior official familiar with the matter. The board will begin the process of finding an appropriate candidate anew, the official added.
According to a second person familiar with the matter, Sharma had expressed a desire to leave last year itself as she was being offered a better remuneration in a role outside the bank. However, the board convinced her to stay on, said this person. Sharma came back to the board recently with a request to leave, following a delay in RBI’s approval of her reappointment. The board finally gave in and asked her to stay till a replacement is found, said this person.
Private sector lender Axis Bank Ltd. today said the board has accepted a request from Chief Executive Officer Shikha Sharma to shorten her reappointment period till the end of December 2018. In July 2017, well ahead of the end of her current term, the board had reappointed Sharma for three years starting June 1, 2018.
The Backdrop
Last year, Axis Bank had appointed Egon Zehnder as consultant to identify the next CEO, which conducted a preliminary search before the board decided on Sharma’s reappointment.
Sharma’s early re-appointment had come against the backdrop of speculation that she may not stay on to lead the bank beyond her current term, which was due to end in June 2018. By clearing the reappointment, the board was hoping to quell uncertainty about an impending leadership change.
However, the reappointment is yet to be cleared by the Reserve Bank of India. On April 1, the Economic Times reported that the RBI had sent queries to the board on its decision to reappoint Sharma. In a statement issued to stock exchanges, the bank said that the board forwards its recommendations to the regulator as required and added that the “process is currently in progress.”
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“If the regulator doesn’t find her proper to continue as CEO then I don’t know how they can approve her term for six more months,” Hemindra Hazari, an independent banking analyst, – Neal Bhai Reports
