SKS Microfinance reshuffles top-level; Removes CEO Gurumani
- Monday, October 4, 2010, 15:50
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Microfinance Focus, October 4, 2010: Indian microfinance giant SKS Microfinance Ltd has informed Bombay Stock Exchange (BSE) that the Board of Directors of the Company at its meeting held October 03, 2010, which was adjourned and re-convened on October 04, 2010, has passed a resolution terminating the appointment of Mr. Suresh Gurumani as Managing Director and Chief Executive Officer of the Company and withdrawn all powers and authorities granted to him or otherwise enjoyed by him in the Company as Managing Director and Chief Executive Officer of the Company, with immediate effect.
The company has appointed Mr. M. R. Rao, Deputy CEO as the Managing Director & CEO for a period of 3 years with effect from October 04, 2010, subject to the completion of necessary statutory and other procedures.
SKS has also accepted the resignation of Mr. Ashish Lakhanpal from Directorship of the Company with immediate effect. Mr. Ashish represented Kismet Capital, LLC, which recently sold a 4.5% stake in the IPO for $48 million and still holds a 7.8% stake in SKS after the issue.
Following these developments, shares of the company were down 5.8 percent at 1,276 rupees at 3:41 p.m. on BSE.
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2 Comments on “SKS Microfinance reshuffles top-level; Removes CEO Gurumani”
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SKS has made a wonderful performance of 265% profit in the Q1 of 2010 under the recently sacked MD/CEO. My question is, why sacking a performer??? I will suggest that the Board of Directors inform everyone of the reason(s) behind the sack, such that if there are lessons to be learnt by other MD/CEO. Transparency in the whole exercise is of paramount importance.
The removal of a CEO should be handled with a lot of transparency, otherwise it leaves the shareholders thinking that the Board has just removed a top performer because of his intolerance to quick money making ideas they have . The relacement should also be observed closely, you may be surprised to note that such replacements are a team of ”yes ” men with nothing new to offer