However sense of security has its own hazards. Fixed period of three years or five years may be good for all provided the person is capable, competent, honest and efficient so that he can plan and execute his plan without any disturbance But lack of fear of transfer may prove disastrous if the person is of bad character, greedy , corrupt , incompetent inefficient, unskilled , unwilled and biased.
To deal with adverse affect on the system due to certainty of fixed tenure there must be a committee of at least ten persons to monitor the activities of such powerful persons to avoid mishap.
It is always to be kept in Mind that Power and absolute power make a man corrupt and specially in India, majority of person invested with absolute power has abused and misused power delegated to him.
It is also to be kept in mind that absolute power given to an authority has also resulted in promotion of flattery and bribery and hence safety measures are warrnated in both the cases.
The culture may be conducive for growth only and only when there is a fear of action against erring officer but not when real performer are victimized only because they are not flatterer and corrupt
A man dealing with lacs of crores of rupees of public money cannot be left unbridled and uncontrolled . After all it is a matter of financial discipline. Corruption in the mind of powerful persons is not casual but usual phenomenon in India. There is scam in recruitment, promotion, posting, lending, purchasing waiver of loan , project implementation and what not.
It is observed in the past that many clever CMD managed extension of his tenure even upto six years or more but failed to protect the company or the bank .Such clever dignitaries first win the hearts of his top bosses and ministers and then leave no stone unturned to earn illegal wealth for him , for his families, for his relatives and for his friends.During the tenure of such corrupt HEAD, all bad assets are concealed and only when he or she quits the job, the real hidden malady comes on the surface.
We have seen how promoters of Satyam Computers who had unlimited tenure of CEO of the company cheated the system.We know how Lalu managed the financials of Railways during his tenure. We know how Harshad Mehta won the hearts of all CMDs of bank and caused enormous loss .We know how CMD of Indian Bank spoilt the future of Indian bank . And so on.
Therefore we must have check point to stop such probable disasters. WE have seen how even persons of the rank of ministers who have been elected for fixed period of five years use to commit fraud with the system and how he or she causes loss to the exchequer billion and billion of rupees.
Top PSU bosses may get fixed terms--Times of India 12th May 2013
NEW DELHI: The government is planning to set a minimum fixed tenure of three years for CMDs and directors of state-run companies in a bid to provide continuity and shore up decision making and investment decisions.
Uncertainty of tenure has hurt PSUs as often the top bosses complete their tenure in the midst of an important investment decision.
Oil minister Veerappa Moily has backed the idea of fixed tenure for CMDs and directors in state-run companies which is expected to improve decision making and streamline functioning in resource rich firms. Moily has written to the prime minister supporting the idea of fixed tenures for CMDs and directors of PSUs.
It is being proposed that the tenure of CMDs would be for a minimum period of three years, irrespective of their age at the time of the first appointment. Those selected will be given a fixed tenure of five years or allowed to serve until the age of 63 years whichever is earlier.
Experts said certainty of tenures would help in performance of state-run firms particularly those in energy, power and infrastructure sector. Most of these firms are in the midst of huge capacity expansion plans while some of them are hunting for resources abroad. Abrupt change in leadership often delays such vital decisions.
To raise the level of transparency, an update on all vacancies of CMDs/ functional directors of PSUs should be provided on the Internet at regular intervals. To reduce the uncertainty, it is being proposed that appointments of CMDs should be made three months before the term of an incumbent CMD is set to end.
A self-assessment report must e filed by all candidates listing their achievements and their vision for the company.
There is also a plan to set up a specialized body within the Public Enterprises Selection Board(PESB) for selecting CMDs/CEOs of Maharatna and Navaratna entities. It should also constitute of two outside experts with domain knowledge.
There is also a move to provide greater autonomy to boards of PSUs for selection of technology partners, joint venture partners and for acquisition of companies. Negotiations with a possible partner would be done by a panel empowered by the board of the PSU according to parameters set for such talks. Any deal approved by the board should not be opened for any investigation or review unless evidence of corruption or wrongdoing is apparent.
A panel of senior ministers is examining the proposals for revamping the state-run companies to enable them to meet the emerging challenges and compete with other top companies.
To increase the effectiveness in the appointment of independent directors on the board of state-un firms, the department of public enterprises and the PESB should draw up a panel of approved names of independent directors and the list should be updated every six months.
http://timesofindia.indiatimes.com/business/india-business/Top-PSU-bosses-may-get-fixed-terms/articleshow/20007860.cms
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