15-year cap on tenure of MD, CEOs of insurance companies on cards

Proposed remuneration to be divided between fixed/variable pay, perquisites

The insurance regulator has proposed to cap the tenure of managing directors (MDs) and chief executive officers (CEOs) of insurance firms at 15 years, aligning it with what the Reserve Bank of India (RBI) has mandated for the top honchos of banks. It has also proposed changes to the compensation structure of the top management at insurance companies, so as to ensure sound compensation practices and avoid situations resulting from excessive risk-taking behaviour due to inappropriate compensation structures or incentive plans.

In an exposure draft, the regulator has said that the post of MD and CEO or whole-time directors (WTDs)