Ebong, Union Bank MD, Gets Tenure Extension
After several months of intrigues and high power play, the Central Bank of Nigeria (CBN) has finally approved the extension of tenure of the Managing Director of Union Bank of Nigeria Plc, Mr. Barth Ebong. The 62 year-old chief executive of the bank was due for retirement on March 31, but, based on what the bank’s board described as his good performance and the need to take the bank through its post-consolidation challenges, they rooted for another two years for him.
It was gathered that the bank’s board gave the managing director it’s backing to run the bank for the next two years due to the “impressive performance of the bank during his tenure.” The directors also cited the need to take the bank through the rigours of post-consolidation.
A source from the apex bank told THISDAY that the approval of Union Bank’s proposal to allow Ebong stay till 2010 was given at a recent board meeting of the CBN in Abuja. The source explained that the apex bank approved the tenure extension because of the brilliant arguments of the board of the bank that by staying on the saddle for the next two years, Ebong would be able to effectively re-organise the bank in view of the emergent challenges in the industry.
The Head of Corporate Affairs Department of the CBN, Mr. Festus Odoko could not confirm the endorsement by the apex bank, but he explained that as long as the bank’s shareholders want Ebong to continue, the regulatory authorities would certainly uphold the move. “It’s the shareholders’ responsibility to confirm the tenure of leadership of the bank. Once they do that, the CBN would not have any reason to oppose the move”, he said. Odoko said the entire leadership of CBN were in Osogbo at the weekend. He said he could only confirm the development tomorrow when work resumes.
Spokesman for Union Bank, Mr. Eddy Ademosu, who confirmed the CBN approval yesterday, however, could not say exactly when the approval was given. “I have just spoken with my group managing director and he confirmed that the CBN has agreed that he stays for the next two years,” Ademosu said.
Ebong, who succeeded former managing director, Mr. Godwin Oboh in April 2006 was said to have clocked the bank’s retirement age of 60 the same year. However, the board was said to have amended the memorandum and articles of association, which then put the retirement age at 62, apparently to accommodate Ebong, who was most favoured to succeed Oboh. Oboh himself had gotten a six months extension of his tenure which expired in 2005.
A source disclosed that already, the bank is looking inwards for a likely successor for Ebong, ruling out the possibility of an external candidate for the bank’s top job when his new tenure expires in 2010. “His successor is likely to be from within. Remember that the subsidiaries and staff own a substantial chunk of the bank’s shares. So, attention will be focused on the directors of the bank in the next two years,” the source said.
Apart from Union Trustees, that holds 5.08 per cent of the bank’s shares, no other individual or corporate institutions hold more than five per cent of the bank’s shares, which is said to “belong to Nigerian people”.
However, a source from the bank said members of the Union Bank’s board got wind of the approval on Friday, when Ebong hurriedly left a board meeting, to receive the news.
A group of shareholders and a former director of the bank were said to have embarked on an intensive campaign to checkmate term elongation, which was championed by the board of the bank. The ambush laid by the group at the bank’s annual general meeting in Abuja late last year was, however, of no effect as the issue of term extension was not on the agenda of the meeting.
Ebong joined the bank in 1977, when it was still Barclays Bank of Nigeria as a management trainee. His appointment was for a two-year term during, which he was expected to groom a younger person to take over from him. The two years he was granted expired on March 31, 2008.
Union Bank Group operates an interlocking organisational structure whereby some board members of the bank act as external directors in the subsidiaries and associated companies. Other members of the board, among whom the next chief executive of the bank is to be picked include, Executive Dire-ctor, Operations, up country-south, Ado Abdullahi; Executive Director, Information Technology/Services, Dr K.S. Adeyemi; Executive Director, Risk Manag-ement & Control, S.I. Ayininuola; Executive Director, Lagos Oper-ations, E.U. Emeruem; Executive Director, Operations, Up Country-North, A.E. Esangbedo; Executive Director, Corp-orate Resources, W.C.O. Mbah and Executive Director, Corporate & International Banking, A.I.N. Obigwe.
As at March 31, 2007, the bank's gross earnings was N88.095 billion; profit before tax was N17.393 billion; total assets was N 699.247 billion; and shareholders' fund was N102.542 billion.
President, Progressive Shareholders’ Association of Nigeria (PSAN), Mr. Boniface Okezie had commended Ebong, for “holding competition in the banking industry positively in favour of the bank. The bank, which some people thought was not making enough gains because of the silent but actively performing attitudes of Ebong, has continued to post impressive results, paying dividends and issuing dividends. I can tell you the bank would eventually reclaim its industry position”.
It’s subsidiaries include Union Homes Savings and Loans Plc, Union Trustees Limited, Union Bank UK Plc, Banque Internationale du Benin, Cotonou, UTL Communications Services Limited, Union Capital Markets Limited and Union Registrars Limited
NSE Closing Figures
More Business Reports...
Visit Our Business Events Board»
Post Your Business Event on Our Board»
|
