Govt removes age restriction for hiring CEOs

Upper age limit for appointment on top slot of distribution companies was 62 years

ISLAMABAD:

The government has removed the restriction on upper age limit for appointment of chief executive officers (CEOs) of power distribution companies. Previously, the age limit for appointing the CEO of a power distribution company was 62 years.

The cabinet had taken up the issue of advertisements for the position of CEOs in its meeting.

The Power Division informed the meeting that there were 10 distribution companies under its administrative control, which were public sector firms.

It stated that these companies were being headed by general managers/ chief engineers on a look-after charge basis as a stopgap arrangement on a temporary basis.

It was then proposed that the appointment of CEOs may be carried out on a regular basis.

According to the Companies Act 2017, the board of directors shall carry out the recruitment process, including advertisement and shortlisting on the fit-and-proper criteria, and furnish a panel of at least three candidates to the line ministry for submission of the case to the federal government after due deliberations at the level of line ministry.

The Power Division said that it intended to get the recruitment process initiated in accordance with the uniform guidelines for the company boards.

As per the uniform job requirements and conditions, the candidate must possess at least 20 years of experience, including at least 10 years of working in the power sector, with at least three years of experience on senior management positions; the candidate must have a bachelor’s degree in engineering and a master’s degree in engineering or business/ public administration or management or economics or finance.

The guidelines, among others, also stated that the candidate must not be more than 62 years of age on the date of advertisement.

Shahid Iqbal Chaudhry, Mujahid Pervez Chatta and Mohsin Raza Khan had been working as CEOs of Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco) and Multan Electric Power Company respectively since November 2, 2018, February 1, 2018 and August 13, 2020 respectively.

These executives are retiring on superannuation on December 10, 2020, January 9, 2021 and January 14, 2021 respectively.

The Power Division proposed that since the process of hiring the CEOs was being initiated, these officers should be allowed to hold their positions till the appointment of regular CEOs or for 90 days, whichever was earlier. The Law and Justice and Establishment Divisions supported the proposal.

However, certain observations were raised over the proposals. The Power Division sought the cabinet’s approval for the proposals.

During discussion, the cabinet members expressed serious reservations about allowing the retiring officers to hold the charge of CEO. It was suggested that the officers who were not close to retirement should be given the responsibility for an interim period.

The age restriction of 62 years in the terms and conditions also came under discussion and it was stressed that the best person for the job should be selected regardless of the age.

The Power Division drew attention to the decision of Supreme Court, which placed a bar on government service beyond 65 years of age.

But adviser to the prime minister on institutional reforms and austerity pointed out that the decision of the Supreme Court would not be applicable in this case since these appointments were being made under the Companies Act 2017, which does not place any age restriction.

The cabinet approved the para with the stipulation that the restriction on the upper age limit of 62 years for the post shall be excluded since it was not tenable under the Companies Act 2017.