Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and Challenges
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Journal of Contemporary Governance and Public Policy
Vol. 2 No. 1, April 2021, 67-78
Available Online at http://journal.ppishk.org/index.php/jcgpp
ISSN (Print): 2722-3981 | ISSN (Online): 2722-3973
Capping the tenure of CEOs as a Good Corporate Governance
Strategy: Prospects and Challenges
Paradzai Munyede1*)
1Institute of Peace, Leadership and Governance, College of Business, Peace, Leadership and
Governance, Africa University, Mutare, 1320, Zimbabwe.
Received: 2020-10-27; Accepted: 2021-04-13; Published: 2021-04-30
Abstract
The concept of good corporate governance has gaining traction over the last three decades
in the private and public sectors as a response to serious financial scandals and
maladministration practices in organisations around the globe. Antidotes provided in
previous studies on these corporate failures attributed this to poor board compositions and
inadequate separation of power. Whilst this was part of the problem, little effort was put to
understand how Chief Executive Officers (CEOs) term limits could also contribute to good
governance practice which would make organisations avoid scandals. Therefore, the purpose
of this paper is to explore how capping CEOs tenure could enhance good corporate
governance in the public and private sectors. This paper is based on a qualitative approach
and used content analysis to review data from published records like journal articles. This
article posited that capped term limit in both the public and private sectors is ideal as it
enhances good corporate governance practice which in turn will make institutions effective
and responsive to changes in their operating environment.
Keywords: Good Corporate Governance; CEOs Tenure; Corporate Governance Instruments;
Chief Executive Officer
How to Cite: Munyede, P. (2021). Capping the tenure of CEOs as a Good Corporate
Governance Strategy: Prospects and Challenges. Journal of Contemporary Governance and
Public Policy, 2(1), 67-78. https://doi.org/10.46507/jcgpp.v2i1.29.
Permalink/DOI: https://doi.org/10.46507/jcgpp.v2i1.29
*) Corresponding Author
Email : munyedep@africau.edu http://journal.ppishk.org/index.php/jcgppJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 68 of 78
Introduction economic growth; no
The issue of capping Chief employment, no taxes paid and
Executive Officers (CEOs) tenure as a invariably the country will not
good corporate governance practice develop. Developing countries,
has eluded most of the academic in particular, need well-
debates. Most debates have focused governed and managed
on board composition and the business enterprises that can
relationship between board and attract investments, create
management. Literature by scholars jobs and wealth and remain
like (Coyle, 2015) have concentrated viable, sustainable, and
on good corporate governance and competitive in the global
compensation for executives. In terms market place. Good corporate
of trying to understand how capping governance, therefore,
of CEOs tenure could add to the becomes a prerequisite for
promotion of good corporate national economic
governance practice, (Whitehead, development.
2011) stated that there is paucity of
literature covering this area. This was also collaborated by
Therefore, this paper argues that the (World Bank, 2014) which maintains
issue of capping of term limits is of that good corporate governance
great importance in upholding good practices are one of the elements
corporate governance practices both which are beneficial to both private
in the private and public sectors. To and public sector organisations as it
butress, this (Okeahalam & improves access to financial markets,
Akinboade, 2003) argues that good reduces risks of scandals, improves
corporate governance practices are a strategic decision-making processes,
prerequisite for organisational reduces corruption whilst improving
performance and economic growth transparency and accountability.
when they stated that,
Corporate governance has Background to Corporate Failures
implications for economic and the role of CEOs
development especially in From the 1980s repeated
helping to increase the flow of serious frauds, financial abuses,
financial capital to firms in boardroom tussles, and corporate
developing countries. This is collapses both in developing and
quite important for developed countries have brought to
policymakers in Africa who are the fore the need to relook at how
concerned with attaining high corporate governance practices are
long-term growth rates of being followed in both public and
about 7 percent per annum private sector organisation, (Mandala,
within the framework of the Kaijage, Aduda, & Iraya, 2017). This
New Partnership for Africa’s was also reinforced by Benz & Frey,
Development (NEPAD). (2007) when they stated that over the
Without efficient companies or last three decades, the corporate
business enterprises, a country world was rocked by huge scandals
will not create wealth or which caused share prices to
employment. Without plummet due to excessive managerial
investment, companies will compensation and manipulation of
stagnate and collapse. If accounting records. Some of the
business enterprises do not scandles in the private sector are
prosper, there will be no Enron in 2001, HIH Insurance Ltd of
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 69 of 78
Australia, World Com, East African more clarity . According to (Leavy,
Portland, and National Bank of Kenya, 2014), content analysis is an
(Edwards et al., 2012; Mandala et al., approach that allows interpretation
2017). The scourge of scandals also of meaning from documentation and
affected the public sector with texts which includes newspapers,
notable cases being the 15 members books, web pages as well as articles.
of the European Union who resigned In other words, it is a method that
in 2002, a member of the makes a valid inference from texts.
Metropolitan police in England who Due to limitations imposed by the
stole over 5 million pounds in 1995 novel coronavirus (COVID-19), this
(Matei & Drumasu, 2015). In the method became compatible with this
Zimbabwean context (Ncube & study as it allows meaningful analysis
Maunganidze, 2014) highlighted the of available records inorder to
following cases with notable provide a meaningful conclusion.
transgressions against good Therefore this study utilised data
corporate governance practices, mega collected from published journals,
remunerations at Zimbabwe reports, web pages, and legal
Broadcasting Corporation, Public documents.
Service Medical Aid Society and
Harare City Council to name a few. Results and Discussion
Whilst recommendations and
corrective measures were made to International, Regional and
address these corporate failures, National Instruments on Corporate
these antidotes did not look if Ceo's Governance
tenure could also be a contributing In response to various
variable in causing the scandals. corporate scandals, governments and
Whilst there is extensive competent bodies responded by
literature covering board toughening corporate governance
composition, company performance laws as well as imposing sanctions to
and top management compensation, corporates which did not implement
there is thin academic research in ethical and transparency practices
understanding if capping Chief (Matei & Drumasu, 2015). In terms of
Executive Officers (CEOs) could be corporate governance instruments
used to enhance corporate (Coyle, 2003) pointed out that the
governance. The few studies done to government of the United States of
date by scholars like (Whitehead, America is the only country which
2011) focused on the private sector enacted legislation to regulate the
only. In terms of research relating to activities of companies. The
term limits in the public sector, it's legislation became known as the
even thinner, therefore this paper Sarbanes-Oxley act of 2002 which
intends to analyse the extent to which among other things introduced a raft
capping of CEOs tenure in the public of measures including the following
and private sector could contribute to provisions, punishing audit firms
the observance of good governance which certify false information, the
practices by organisations. establishment of independent audit
committee which included
Research Methods independent members, independence
This study is anchored on and integrity of external auditors. In
qualitative research design with terms of CEOs, the act states that the
content analysis being adopted in individuals must not have been an
interpreting data inorder to gain employee of the companies audit
company and that he/she must sign
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 70 of 78
annually and certify that the financial Kingdom as its compilation has input
statement represents the true state of from Sir Adrian Cadbury. This code is
affairs. also a voluntary code meaning its
Though the Sarbanes-Oxley application depends on the
Act of 2002 is held as a millstone in willingness of organisations.
improving corporate good According to the (Institute of
governance, its main weakness is Directors of Southern Africa (IODSA)
that, firstly, it did not address the (2016), the Kings report
issue of CEO’s tenure which is a complements other international
significant area of interest in the instruments by promoting sound
promotion of good corporate corporate governance through adding
governance practice. Secondly, the act issues that apply to the South African
is directed more to the private sector context. However, the report
than the public sector as it places introduces the African philosophy of
more emphasis on regulating trading “Ubuntu” as the point of reference in
of securities of listed companies on governance because it is anchored on
the New York Stock Exchange. principles of integrity, communalism,
However, the act provides a strong mutual respect, human dignity,
basis to examine how a CEO's tenure sharing, and accountability. This
could be looked at in terms of how it philosophy emphasizes the necessity
can enhance good corporate for organisations to understand the
governance practices. reciprocal relationship which they
In the United Kingdom, the enjoy with communities because this
country followed a different approach cordial relationship leads to
as they adopted a voluntary sustainable development which will
instrument known as the Combined be beneficial to both parties.
Code of 1998. The Combined Code is Another important feature of
a culmination and consolidation of the King's report is its emphasis on
prior works namely, Cadbury, leadership and ethics as it posits that
Greenbury, Hampel, Turnbull, Smith, the success of organisations is
and Higgs reports. According to dependent on the ethical behaviors of
(Coyle, 2003) the code covered a lot the leaders who include CEOs. In a
of areas that promote good corporate major departure from other codes,
governance. The areas include the the report explicitly covers the
separation of the roles and functions private and public sector and it uses
of Chairman and CEO to ensure that the following nomenclature
the board is not dominated by a few organisations, this encompasses both
individuals. Further, the code private sector governing institutions.
stipulates that the CEO's The Kings Report explicitly covers in
remuneration must be disclosed in detail the following, Local
the annual financial statements by governments, State-Owned Entities,
category showing share options, Non-Profit Organisations, Retirement
bonuses, and any performance- Funds as well as Small and Medium
related incentives. The major Enterprises. Despite making good
weakness of this code is similar to coverage of important governance
that of the Sarbanes-Oxley Act as matters, the capturing of Ceo's tenure
discussed above. as a key element in good corporate
The South African corporate governance remains elusive, as it is
governance instrument known as the not covered.
King's report was greatly influenced The National Code on
by the Combined Code of the United Corporate Governance Zimbabwe
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 71 of 78
(2014) also referred to as the corporate governance (Matei &
National Code and the Public Entities Drumasu, 2015). In policy or
Corporate Governance Act, Chapter decision-making process, the CEO has
(10:31) are the instruments guiding to ensure that the whole process is
corporate governance in Zimbabwe. not opaque but it is transparent and
The National Code covers other can be verified by all those who will
contentious issues in corporate be affected by it. To this end
governance like, board composition, (Edwards, Halligan, Horrigan, &
the establishment of the audit Nicoll, 2012b) agree that strong
committee, size of boards and leadership by CEOs based on good
remuneration of management but its ethics is ideal for success for
silent on the issue of CEOs tenure organisations. For example, if CEOs
which this study argues that its a remuneration is set within agreed
critical component in enhancing good limits, this same shared meaning will
corporate governance practice by cascade to all levels of the
both public and private organisations. organisation, if he or she does the
The Public Entities Corporate opposite, then most workers will
Governance Act, Chapter (10:31) agitate for salaries which do not
under section 17 provides that Ceo's relate to their positions.
tenure must be limited to two five The Ceo is also responsible for
year terms. However, the major establishing comprehensive risk
challenge with this provision is that it management, compliance, and
is in variance with what happens in assurance system. He/She is also
practice as CEOs in most public tasked in ensuring that good
organisations do not leave office after corporate governance practices are
the end of their tenure as they are upheld by setting a clear
always reassigned or rotated to other accountability mechanism that
ministries or sister organisations. protects organisational assets from
pilferage and abuse (Edwards et al.,
The Purpose of CEOs in Promoting 2012a). Matei and Drumasu (2015)
Good Corporate Governance reiterated that upholding of good
World Bank (2009) posits that corporate governance practices by
good corporate governance practices CEOs contributes to efficient
ensure stability and viability of utilization of financial resources,
organisations whilst its weaknesses decreases budget deficits, elimination
will lead to reduced investor of corruption which in turn will result
confidence failing to attract new in improved performance by the
capital which will lead to the collapse entity in the provision of goods and
of an entity. Closely related to this is services.
the role played by leadership and According to the (Institute of
culture in shaping the foundation and Directors of Southern Africa, 2016),
direction of the organisation. Schein the CEO is also responsible for
(2004) postulates that CEOs as providing ethical leadership which is
leaders are a critical cog in shaping evidenced by his/her competence,
the values and beliefs of group integrity, and fairness in handling
members to focus on a common affairs of the organisation. Internally,
objective. In this regard, a CEO who the CEO has the responsibility to
sets a culture based on such values as ensure that decision making meetings
ubuntu, accountability, transparency, are held regularly as these help in
responsibility, fairness, and integrity, shaping the policy and direction of
will be fulfilling key tenents of the organisation. He or She must
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 72 of 78
ensure that appropriate spaces of out that the CEO is also responsible
engagement with stakeholders are for communicating policy issues
available and meetings are held relating to the performance of the
accordingly and correct information organisation and corporate social
is disseminated to all intended responsibilities. Communicating an
recipients. The integrity of CEOs is organisations policies and
also tested during a process like operational standards helps
procurement as this activity recipients to understand and
constitute a large proportion of most measure how such entity will be
organisations expenditure lines, following good governance practices.
(Munyede & Mapuva, 2019).
Therefore, if the procurement process CEOs as a Corporate Construct
is done above board it translates to In most countries, the term
better services to clients which will CEO is ascribed to a position occupied
create a good relationship whilst by a top executive in the private
procurement mirred in corruption sector. It embodies the head of a
deprives citizens of quality goods and corporation which might be a listed
services. company or a small family-owned
Further, it is the responsibility business. The CEO is viewed as the
of the CEO to ensure compliance with figurehead who is a link between the
laws and regulations to safeguard the board of directors and staff members.
interest of the organisation. Failure to In the Public Sector, the term CEO is
comply with laws like paying taxes also known by different titles such as
timeously exposes the organisation to Permanent Secretary, Executive
penalties or even closure by the Secretary, Town Clerk, Vice-
government. Through the CEO Chancellor, or Commissioner-General.
organisations gains, credibility Despite the various titles, they all
through publishing audited Financial have a common title that is
accounts which act as evidence of Accounting Officer which equates
good stewardship on behalf of them to CEOs in the private sector.
stakeholders. According to (Coyle, The CEOs in the public and
2015) audited financial statements private sectors are shaped by the
act as a barometer to which an environment under which they
organisations performance is operate. Though both are affected by
measured. Since audited financial social, technological, legal, economic,
statements disclose itemised top and political environments the degree
executive's remuneration, this of influence differs greatly. In terms
provides a transparent measure of of political, social, and legal
knowing emoluments of top environment public sector managers
managers thereby ensuring that are greatly affected because public
agreed levels are maintained. organisations which they preside
The CEO is also the sounding over, are responsible for provision of
board for the Board of Directors as he public goods and services. These
provides advice on company goods and services attract politicians
performance, the status of assets, who exert pressure on the CEO so
human capital requirements, and that these goods benefit certain
dissemination of accurate priority areas mainly their
information within and outside the electrolate. In terms of legal
organisation. Organisation for provisions, CEOs in the public sector
Economic Co-operation and lacks flexibility as they operate
Development (OECD), (2011) points around a framework regulated by a
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 73 of 78
plethora of laws, regulations, the ability to retain the right skilled
circulars, and codes of conduct. For staff. He further pointed that another
example, most constitutions assign challenge encountered in setting
the responsibility of Human Rights to conditions of service is when an
public institutions, so the CEOs as organisation operates a unitary board
heads become the duty bearers whereby the Chairman will also be
whose mandate will be to ensure the CEO because such individuals will
their fulfillment for the benefit of be wielding significant influence over
rights holders. The failure to comply other board members. This situation
with fulfilling the human rights is exacerbated if the Chairman would
provisions will result in CEOs and have been the CEO long time and this
their institutions being arraigned gives them the ability to erode the
before the courts for failing to follow power of the remunerations
constitutional provisions. This has the committee. Whilst a CEO with a short
effect of shaping CEOs to be tenure lacks the influence to
bureaucratic and less creative as they negotiate a higher package as he/she
would want to avoid being punished will be trying to establish himself
if they transgress beyond the various which he/she will try to do by
legal instruments. achieving agreed targets thereby
The CEOs in the private sector improving organisational
are insulated from compliance to a lot performance. However, due to higher
of these regulations, but they are compensation and packages most
shaped greatly by the dynamic private organisation always offer
changes which occur in the capped CEO tenure linked to
competitive business environment of performance usually two five year
the private sector. They are also terms.
greatly affected by the technological In the public sector, most
changes which dictate how products CEOs do not have the flexibility of
are processed, therefore to remain negotiating conditions of service as
viable the CEO will always be racing these are predetermined by an organ
to identify new technologies that will or institution which has mandate
give them an edge over competitors. such as the Public/Civil Service
Commission. In most cases, working
Generic Working Conditions of CEOs conditions for CEOs in State-Owned
In the private sector, the Enterprises and local governments
remuneration committee has the are agreed at institutional level but
mandate of setting the working are subject to review by line ministry.
conditions for CEOs, (Institute of This was collaborated by (Janke,
Directors of Southern Africa, 2016). Propper and Sadun, 2019) when they
To safeguard from personal interests, posited that the appointment of CEOs
the membership of this committee is in the public sector is not entirely to
composed of independent members. the board of directors of the State-
The mechanism in the private sector Owned Enterprise or local
gives the CEO a platform to negotiate government but it is reviewed by line
his or her conditions of service with Ministries which has the ultimate
the committee. However, (Coyle, power to determine the appointment
2015) noted that there are of candidates as well as their
challenges encountered in setting up conditions of service. Some of the
conditions of service for CEO’s appointments are also recommended
especially in trying to balance by the Cabinet or Commissions for
between an attractive package and approval by parliament or the
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 74 of 78
President of that country. In can be profitability. They further highlighted
seen that working conditions in the that compensation is not entirely
public sector is not a straight forward linked to meritocracy and
affair, but it follows a series of performance but the length of service.
multilayered levels of bureaucracy. To understand the different
In terms of compensation, conditions of service for CEOs in the
(Hickman & Lee, 2001) states that in public and private sectors,the
the public sector, it is linked to following comparative table gives
functions and position, not to such analysis.
Table 1: Comparative benefits between CEO in private and public sector
ITEM CEO
Private Sector Public Sector
Salary-Fixed yes yes
-Performance-based yes -
Housing Yes yes
Share Options/Equity yes -
Board meeting allowance yes -
Motor vehicle and fuel yes yes
Severance allowance Yes yes
Security Guard Yes -
House Maid yes -
Telephone Allowance yes yes
Medical aid cover yes yes
Funeral cover yes yes
Pension Scheme yes yes
Education allowance yes yes
Vacation Leave days yes Yes
Annual Bonus Performance-based yes
Subscriptions to professional boards yes -
Holiday Allowance yes -
Working Hours Flexible Fixed
Source: Processed by the author (2021)
It can be noted that working
conditions for CEOs in the private
sector are better as compared to the
private sector.
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 75 of 78
Uncapped CEOs Term Limits: CEOs especially in the public sector.
Debates This argument is also silent on one
As the chorus to uphold good major contentious issue of
corporate governance practices compensation. Ideally, a higher
grows, two distinct competing package is more appropriate for short
debates have emerged. The first tenure as the CEO would be able to be
school of thought argues that tenure cushioned once he leaves
of CEOs in public and private employment. In most developing
organisations must be capped in line countries employment opportunities
with presidential term limits found in are limited such that if a person
most democratic constitutions as they leaves employment he/she might find
argue that a President is the CEO of it difficult to get another position
the country. This school of thought despite that he/she might be highly
argues that, since most Presidents skilled and qualified, therefore
have a constitutional two five-year capping the term limit does not
term limit, this must then be cascaded address this issue holistically.
to all public and private sector The second school of thought
organisation. Proponents for this as advanced by Whitehead (2011)
school of thought like (Benz & Frey, argues that CEOs with uncapped term
2007) argue that for example in the limits are necessary for organisations
United States of America there are as they have proven leadership based
two four year term limits applicable on years of practical experience
to the president and this can also gained mainly inside the organisation
being applied to CEOs in the through promotions. He critiques that
corporate world. Choruma (2019) a capped tenure for a CEO will make
reaffirms this line of thought when he him/her short-sighted and focus on
stated that the Constitution of short outcomes. It is argued further
Zimbabwe Amendment No (20) of that, CEOs with long tenure are
2013, section 95 give two five year beneficiary in that they focus on
terms to the Head of State and pursuing long term objectives which
Government, therefore the same must will provide good returns to
be extended to leaders in the public organisations. Choruma (2019) is of
and private sectors. This was also the view that the issue of CEOs tenure
supported by (Mohd-Saleh, Mohd- is the responsibility of the Board of
Sanusi, Abd-Rahman, & Bukit, 2012) directors because its an internal issue
who argue that short-tenured CEOs that must be governed by an
uphold good corporate governance organisations code. Therefore, an
practices as their disclosure of organisation could choose either to
information to the board of directors go in favour of uncapped or capped
and shareholders is more transparent tenure.
because they would be trying to Those in the public sector
prove their integrity and reputation. seem to favour the uncapping of term
However, the major drawback limits for a variety of reasons. Firstly,
of this argument, is that in countries most CEOs rise from lower ranks to
with weak democratic institutions, higher positions through a structured
constitutions are amended to allow internal promotional bureaucratic
incumbent (Presidents) to extend process, therefore it is argued that
their hold to power for perpetuity. this experience can not be discarded
Because of such blatant constitutional easily. Secondly, it is argued that
transgressions, it also becomes CEOs in the public sector are career
impossible to then put term limits to civil servants and the sector lacks
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 76 of 78
adequate financial resources to offer Alternative route to cap tenure in
higher compensation packages the public sector
therefore long tenure accompanied To promote good corporate
by a guaranteed pension will become governance practice, this paper
ideal. Thirdly, the nature of services argues that the capping term limit is
like refuse collection, road the ideal route to take. The private
maintenance, and public lighting sector as indicated above can pay
offered by public organisations are better compensation to a CEO thereby
difficult to measure and outcomes are this poses no challenges. On the
difficult to attach to a single contrary, the public sector has
individual. It is argued that unlike a challenges since remuneration is
CEO in the private sector where lower, however, this paper maintains
indicators such as profitability, return that public sector organisation can
on capital, earnings per share, and have capped tenure. To cushion the
dividend cover are easy to measure. CEOs in the public sector, the
Given such a setting uncapping of following can be adopted.
tenure becomes necessary for CEOs in • Loans at concessionary rates to
the public sector. purchase assets like a house,
vehicle, and other basic needs
Drawbacks of uncapped Tenure have to be extended to CEOs.
However, there are drawbacks • To guarantee the continued flow
associated with giving CEOs of income, options to invest in
uncapped tenure which goes against government and municipal bonds
good corporate governance practice. must be availed to these top
According to (Whitehead, 2011) long- executives.
tenured CEOs capture the board of • The practical experience of these
directors resulting in (board erosion) executives needs to be tapped
which will result in him overruling into institutions of higher
their decision thereby affecting the learning by creating platforms in
principal-agent theory. This is worse which they come as paid
in dualistic boards where the CEO is lecturers, guest speakers at
also the Chairman of the company as symposiums, and forums.
he/she will be wielding more power • They can also be given the space
than the board. Choruma, (2019) to document their experiences
argues that long-serving CEOs into books thereby creating
become complacent and less value- repositories that will promote
adding to the organisation. Further, efficiency and effectiveness of the
uncapped tenure makes public sector.
organisations become stagnate and
will not regenerate themselves Conclusion
thereby affecting their overall Corporate governance has
performance. In terms of disclosure evolved significantly over the last
of information to stakeholders, long- three decades and continues to do so.
tenured CEOs are conservative as The demands for accountability and
they would be unwilling to expose transparency by stakeholders are
themselves especially when there is becoming a prerequisite for both
an issue that will affect their job public and private sector
security. organisation. This, therefore, places
the CEO as a key player who should
advance good corporate governance
practices which include limitations of
Paradzai Munyede/Capping the tenure of CEOs as a Good Corporate Governance Strategy: Prospects and ChallengesJournal of Contemporary Governance and Public Policy 2 (1), April 2021, 67-78 77 of 78
their tenure. Whilst the public sector Managing Human Resources in
and some organisation in the private the Public Sector: A Shared
sector favors uncapped tenure, this is Responsibility. San Diego:
against good governance practices as Harcourt College Publishers.
it concentrates power in the hands of Institute of Directors of Southern
an individual. Africa. (2016). King IV Report on
Therefore, capping of Ceo's Corporate Governance For South
tenure provides realistic chances of Africa. Johannesburg: Institute Of
improving organisations performance Directors Southern Africa.
either in the public or private sector. Katharina Janke, C. P. (2019). The
The issue of CEOs tenure is a critical Impact of CEOs in the Public
variable that has a direct impact on Sector: Evidence from the English
enhancing the viability of institutions, NHS. Boston: Harvard Business
therefore capping is in line with good School.
governance practice. Leavy, P. (2014). The Oxford
Handbook of Qualitative
Acknowledgments Research. New York: Oxford
Author thank the Institute of University Press.
Peace, Leadership and Governance, Mandala, N., Kaijage, E., Aduda, J., &
College of Business, Peace, Iraya, C. (2017). Board Structure,
Leadership and Governance, Africa CEO Tenure, Firms’
University for their supports this Charactersitics and Performance
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