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NSE: Battling with Succession Intrigues
- By Kayode Ogunwale
- Published June 28th, 2010
- StockWorld
- Unrated
Finally the succession plan of the Nigerian Stock Exchange (NSE) has assumed another dimension as the Exchange has placed adverts for filling of the top positions. KAYODE OGUNWALE examines the intrigues of the succession struggle.
Introduction
WITH the announcement of the retirement of Professor Ndi Okereke Onyiuke, director general of the Nigerian Stock Exchange (NSE), the local media had been awash with series of analyses, speculating on the succession plan of the exchange and the prospective candidates. Questions had been raised on the right succession plan to adopt, and prospective candidates for the post had been weighed and their chances examined.
The NSE on its own has a succession plan where Onyiuke would be replaced by one of topmost officers of the NSE. But following strident calls for transparency and the need to widen the search for a fit and proper candidate, the gates have been thrown wide open. The NSE has launched a search for the right person to succeed Onyiuke, who will retire on November 2, 2010.
The exchange has placed adverts in some newspapers for the recruitment of individuals for the post of chief executive officer; executive director, market operations and information technology; executive director, listings and executive director, strategy and business development.
To provide leadership for its transformation programme, the NSE is seeking to recruit qualified and experienced executive to be its future chief executive officer who will among other things implement a strategic programme for national development and growth that includes diversification of the economy and reform of its financial system.
According to the advert, the new chief executive officer will establish and execute plans to achieve the strategic objectives of the exchange including competitiveness, operating efficiency, diversification and aggressive growth. He/She will provide insight and directive to increase the liquidity and depth of Nigeria’s capital market, the advert further read.
Succession intrigues concerning who takes over from Onyiuke also extended to the Securities and Exchange Commission (Sec) (the apex capital market regulatory body). The commission viewed with suspicion the recent reforms at the NSE, demanding for a credible succession plan which would lead to the emergence of a new director general. The commission appears to be worried about the ongoing personnel restructuring at the NSE and is seeking assurances that its succession plan would in the end produce a credible successor to Ndi Okereke-Onyiuke when she leaves in November.
Sec was seeking details of the reforms programme by the NSE in order to ensure that it does not pre-empt that of the Sec, as contained in the Dotun Sulaiman report on capital market structure and processes.
According to Sec, a “proper and fit” candidate who is expected to take over from Okereke-Onyiuke when she retires can only be achieved through international best practice. Speaking during the presentation of new rules of the commission last month, Arunma Oteh, director general of Sec said the process must be advertised internationally, in order to give numerous candidates opportunity to participate.
Oteh explained that the commission is following the selection process closely, adding that it is important that concerns are not raised by stakeholders at the end of the exercise. She added that the commission met with the leadership of NSE in March, where the issue of due process and transparent selection process was discussed. She stressed that the commission has also directed Okereke-Onyiuke to ensure the selection process is completed in June.
“From what we were told, we at Sec are confident that this is what they are planning,” said Oteh, adding that “those who succeed the present crop of officers must be proper and fit”. The selection process has for the past few months polarised the leadership of NSE and some senior management staff, who are alleging that the director general was paving the way for some “favoured candidates”. Recently, Okereke-Onyiuke’s assistance, Mr. Lance Musa Elakama, who was favoured to assume the mantle of leadership, was retired along with others in controversial circumstances.
In the same vein, the House of Representatives committee on capital market recently invited Professor Ndi Okereke-Onyiuke over the succession plan at the exchange.
Hon. Ahmed Wadada, chairman of the committee said the invitation followed alleged plans by NSE to embark on mass retirement of its management team without a clear succession plan to ensure the sustenance of the legacies of the present crop of managers.
Okereke-Onyiuke said that it had been agreed in 2008 that the four top managers will retire in line with the restructuring and this had been approved by the council. Mrs. Yinka Idowu and Mr. Henry Onyekuru, two former general managers of the exchange have resigned in line with the succession plan.
Onyiuke had earlier said nobody was forced to resign and the NSE had a 10-year succession plan: “We decided that we should groom the young ones among us. The decision to restructure was not decided by one man, never, it was the management’s decision which engaged Accenture, a world renowned management consulting firm, to carry out the restructuring.”
Prof Okereke-Onyiuke has been CEO since January 2000. She joining the NSE in 1983 when she came back from working at the New York Stock Exchange as exchange services manager and systems consultant (1976-1983).
Stakeholder Reaction
Mr. Akeem Oyewale, managing director and chief executive officer of Stanbic IBTC Stockbrokers Limited said that the succession would be a good one as the Sec has indicated interest in being involved in sanctioning the appointment of a new CEO.
Another stockbroker who pleaded anonymity said the Nigerian stock market has grown beyond the stage where the director general can single-handedly choose a successor. He stated that the investing public are looking forward for best candidate to fill the vacant position at the exchange through due process. “As it stands, positions are likely to be filled on merit and less on the patronage of the out-going Professor Ndi Okereke-Onyuike, DG. It is my considered opinion that the advertisement of the vacant position is a welcome development that will provide the necessary fillip for the growth of the Nigerian stock market.
Introduction
WITH the announcement of the retirement of Professor Ndi Okereke Onyiuke, director general of the Nigerian Stock Exchange (NSE), the local media had been awash with series of analyses, speculating on the succession plan of the exchange and the prospective candidates. Questions had been raised on the right succession plan to adopt, and prospective candidates for the post had been weighed and their chances examined.
The NSE on its own has a succession plan where Onyiuke would be replaced by one of topmost officers of the NSE. But following strident calls for transparency and the need to widen the search for a fit and proper candidate, the gates have been thrown wide open. The NSE has launched a search for the right person to succeed Onyiuke, who will retire on November 2, 2010.
The exchange has placed adverts in some newspapers for the recruitment of individuals for the post of chief executive officer; executive director, market operations and information technology; executive director, listings and executive director, strategy and business development.
To provide leadership for its transformation programme, the NSE is seeking to recruit qualified and experienced executive to be its future chief executive officer who will among other things implement a strategic programme for national development and growth that includes diversification of the economy and reform of its financial system.
According to the advert, the new chief executive officer will establish and execute plans to achieve the strategic objectives of the exchange including competitiveness, operating efficiency, diversification and aggressive growth. He/She will provide insight and directive to increase the liquidity and depth of Nigeria’s capital market, the advert further read.
Succession intrigues concerning who takes over from Onyiuke also extended to the Securities and Exchange Commission (Sec) (the apex capital market regulatory body). The commission viewed with suspicion the recent reforms at the NSE, demanding for a credible succession plan which would lead to the emergence of a new director general. The commission appears to be worried about the ongoing personnel restructuring at the NSE and is seeking assurances that its succession plan would in the end produce a credible successor to Ndi Okereke-Onyiuke when she leaves in November.
Sec was seeking details of the reforms programme by the NSE in order to ensure that it does not pre-empt that of the Sec, as contained in the Dotun Sulaiman report on capital market structure and processes.
According to Sec, a “proper and fit” candidate who is expected to take over from Okereke-Onyiuke when she retires can only be achieved through international best practice. Speaking during the presentation of new rules of the commission last month, Arunma Oteh, director general of Sec said the process must be advertised internationally, in order to give numerous candidates opportunity to participate.
Oteh explained that the commission is following the selection process closely, adding that it is important that concerns are not raised by stakeholders at the end of the exercise. She added that the commission met with the leadership of NSE in March, where the issue of due process and transparent selection process was discussed. She stressed that the commission has also directed Okereke-Onyiuke to ensure the selection process is completed in June.
“From what we were told, we at Sec are confident that this is what they are planning,” said Oteh, adding that “those who succeed the present crop of officers must be proper and fit”. The selection process has for the past few months polarised the leadership of NSE and some senior management staff, who are alleging that the director general was paving the way for some “favoured candidates”. Recently, Okereke-Onyiuke’s assistance, Mr. Lance Musa Elakama, who was favoured to assume the mantle of leadership, was retired along with others in controversial circumstances.
In the same vein, the House of Representatives committee on capital market recently invited Professor Ndi Okereke-Onyiuke over the succession plan at the exchange.
Hon. Ahmed Wadada, chairman of the committee said the invitation followed alleged plans by NSE to embark on mass retirement of its management team without a clear succession plan to ensure the sustenance of the legacies of the present crop of managers.
Okereke-Onyiuke said that it had been agreed in 2008 that the four top managers will retire in line with the restructuring and this had been approved by the council. Mrs. Yinka Idowu and Mr. Henry Onyekuru, two former general managers of the exchange have resigned in line with the succession plan.
Onyiuke had earlier said nobody was forced to resign and the NSE had a 10-year succession plan: “We decided that we should groom the young ones among us. The decision to restructure was not decided by one man, never, it was the management’s decision which engaged Accenture, a world renowned management consulting firm, to carry out the restructuring.”
Prof Okereke-Onyiuke has been CEO since January 2000. She joining the NSE in 1983 when she came back from working at the New York Stock Exchange as exchange services manager and systems consultant (1976-1983).
Stakeholder Reaction
Mr. Akeem Oyewale, managing director and chief executive officer of Stanbic IBTC Stockbrokers Limited said that the succession would be a good one as the Sec has indicated interest in being involved in sanctioning the appointment of a new CEO.
Another stockbroker who pleaded anonymity said the Nigerian stock market has grown beyond the stage where the director general can single-handedly choose a successor. He stated that the investing public are looking forward for best candidate to fill the vacant position at the exchange through due process. “As it stands, positions are likely to be filled on merit and less on the patronage of the out-going Professor Ndi Okereke-Onyuike, DG. It is my considered opinion that the advertisement of the vacant position is a welcome development that will provide the necessary fillip for the growth of the Nigerian stock market.
