The appointment of a private sector individual to lead India’s largest insurer, which manages 41 trillion rupees ($500.69 billion) in assets, would be a first in its 66-year history.
“The government is planning to broaden the eligibility criteria for appointment lic ceo So that private sector candidates can apply,” said one of the government officials, who declined to be identified as the discussions were private.
ministry of finance, which oversees LIC, did not respond to emailed queries. Officials said the insurer is now led by a president, but that position will be eliminated in March.
After that, the government will appoint a chief executive from the private sector, he said. change in governing law LIC were created last year to enable this.
Another government official, also on condition of anonymity, said, “The move will provide more options and will send a good signal to the shareholders.”
Officials did not specify from which region the appointee could come.
The insurer’s share price has declined since its listing in May last year and trades 30% lower than the price at which the shares were issued, wiping out nearly 2 trillion rupees ($24.31 billion) in investor wealth. The damage is done.
a former finance secretary, Subhash Chandra Gargsaid he agreed with the idea that the pool of professionals qualified to lead the insurer should be expanded from sister, state-run firms.
“There is absolutely no harm, it is a completely sensible move,” Garg said.
While the decision to hire from the private sector was made in principle, the government was considering whether further changes were required in the law and whether the government could offer salaries in line with the private sector, the first official said.
Private companies generally pay more than the public sector.
The government has in the past made appointments from the private sector to other government entities such as banks.