To succeed Rana Kapoor as Chief Executive Officer of YES Bank, Rajesh Sud and Rajat Monga had been shortlisted. According to reports now, however, Sud has backed out of the running.
Monga is thus the only recommendation for the CEO’s job at the moment. The RBI, in October, had instructed that Kapoor’s successor be appointed by 1st February, 2019 and the executive tenure of Rana Kapoor has been brought down to January 31st, 2019. A search and selection committee has been responsible for shortlisting the candidates to run the enterprise. This committee had the directive to evaluate both internal and external candidates and make their recommendations to the board to allow time also for the RBI’s final approval.
Monga has served with the bank since 2004 when it commenced functioning. At present, he is the Senior Group President of financial markets at Yes Bank and has also served as its Chief Financial Officer.
While Sud has not yet commented on his decision to withdraw from the race, Madhu Kapur and Rana kapoor are pressed for time to finalize CEO and Chairman selection decisions. As with any new top leadership appointment, it would be safe to assume that the bank might see operational changes in the near future.
Leadership changes often affect the general tone of an organization. When a shortlisted candidate withdraws from the process, the news and assumptions might also affect other employees across levels. That raises the debate whether it is better to conduct these leadership changes covertly in order to prevent organizational stress or to adhere to the demand for transparency in today’s age.