‘CEOs should not be in same position for over 10 years’

KUALA LUMPUR: Leaders in the corporate sector, including the chief executive officers (CEOs), should not be in the same position for over 10 years, said Permodalan Nasional Bhd group chairman, Tan Sri Abdul Wahid Omar.

He said although long-serving CEOs could provide stability to the companies, they could also pose risks of declining or stagnant performances or even slipping into complacency.

“Researches have suggested that the performances of many companies whose CEOs have been at the helm for over 10 years could not be as good as their performances in the first 10 years in the position.

“If that person is good, you should actually move him to assume a bigger role or give him or her the opportunity to lead a bigger organisation,” he said at the Malaysia Leadership Succession Summit yesterday.

Abdul Wahid said it was important for the organisation to rejuvenate itself from time to time, among others, it could perhaps limit the tenure of its leaders holding the same position.

He said organisation should also give young people the opportunity to rise up and take over the helm for a fresh and different working environment.

“I think it is important for us to renew our commitment to our future leaders and have the courage to give some talented young leaders the opportunity to hold the higher position such as the CEO,” he said.

The two-day summit, which started yesterday, is jointly organised by the Univ er sit iTek no logi Mara (UiTM), Institute of Leadership and Development UiTM and Global Leadership Dynamics Asia.

Among the reputable speakers at the event were Auditor-General Tan Sri Dr Madinah Mohamad, Securities Commission chairman, Tan Sri Zarinah Anwar, Habib Group Managing Director, Datuk Seri Meer Sadik Habib, SME Corporation Malaysia CEO, Datuk Hafsah Hashim and fashion designer Hatta Dolmat. — Bernama