Nigerian Communications Commission (NCC) at the weekend rolled out new corporate governance initiative for the internal management of players in the industry which contained a directive that directors of companies should not be involved in deciding on their own remunerations.
The new plan also informed telecoms companies operating in Nigeria that the positions of chairman of board of directors and chief executive officer (CEO) should be occupied by two separate individuals.
Eugene Juwah, executive vice chairman and CEO, NCC, said that the enthronement of good corporate governance standards and practices in organizations encourages corporate success and business sustainability.
Under the plan, “no one should be involved in deciding on his own remuneration. The Board may establish a remuneration committee charged with responsibility for assisting and making recommendations to the Board, such procedures, processes, policies and practices to be adopted for Board and Executive Management remunerations in the company. The Board remuneration committee should be made up largely of NEDs”
The new code stipulates that, “In order to institute and maintain independence and proper checks and balances, the positions of Chairman of the Board of Directors and that of Chief Executive Officer should be occupied by two separate individuals.”
According to the board of telecoms company carries hefty responsibility in ensuring the smooth and effective management of such businesses and occupies a very key role to balance the interest of its shareholders and other external stakeholders.
“The Board is the highest decision-making body, charged by the shareholders in general meeting with responsibility for direction, control and management of the affairs of the company and is the body with primary responsibility for Corporate Governance in the company. While the Board may delegate some of its powers, it remains responsible for the governance of the organisation”, according to the Code.
The role of the Board also comes into focus when balancing the interests of stakeholders to ensure that they establish “leading practices that enhance public perception, reputation and sustainability of the company.” Nigeria Communications Week
