Abstract
The non-executive Chairman, Chaturvedi, must lead the Board of Directors of ICICI Bank as it deals with the adverse findings by a former Supreme Court judge against Ms. Chanda Kochhar, the former Chief Executive of the Bank. She had not disclosed a conflict of interest regarding a loan to a corporate group that had business dealings with her husband. Months earlier, the Board had exonerated her and also allowed her to retire from the Bank. Could and should the Board now reclassify Kochhar’s retirement as ‘Termination for Cause’ and claw back her past bonuses?
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | F&A0566 |
| Title | Governance at ICICI Bank: Chairman's Dilemma |
| Pages | 9 |
| Published on | Feb 9, 2022 |
| Year of Event | 2019 |
| Authors | Barua, Samir Kumar; Varma, Jayanth R; |
| Area | Finance and Accounting (F&A) |
| Discipline | Ethics and Governance |
| Sector | Banking Finance Insurance (BFI) |
| Learning Objective | Understand the core tenets of Corporate Governance especially the Board of Directors’ fiduciary responsibility. Apply the concept of fiduciary responsibility to the specific context of the Board’s possible responses to the Srikrishna report. Understand the importance of reputation for a bank and for its board. Analyze the implications of each of the choices available to Chaturvedi for (a) the reputation of the Bank and (b) the fiduciary responsibility of the Board. Based on this, select the best course of action Formulate a strategy for Mr. Chaturvedi to achieve the preferred outcome in the Board meeting. |
| Keywords | Termination of CEO; Fiduciary Responsibility of the Board; Organizational Reputation |
| Country | India |
| State | Maharashtra |
| City | Mumbai |
| Organization | ICICI Bank |
| Access | For All |
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