The Securities and Exchange Commission (SEC) has been called upon to check the flamboyant lifestyles of Companies Chief Executive Officers who deploy their companies’ fortunes to live ostentatious lifestyles while their firm and shareholders are denied dividends.
Speaking to Daily Times Nigeria, correspondent, cross-section of market stakeholders called for effective policy to regulate the lifestyle of some CEO, as in some cases, companies have been dragged down by expensive lifestyle of some CEOs.
The Coordinator, Progressive Shareholders Association of Nigeria (PSAN) Mr. Boniface Okezie said that lifestyle of some CEO, leaves heavy financial burden on their companies year on year, and has always been represented in many forms n the companies accounts, leading to high operation expenses and other costs.
He argued that if such excesses is checked by the regulator through a yet- to- be fashioned out policy, more companies will begin to record better performances and gains higher confidence of investors based on good profitable results and growth potentials.
“When it has to living large, flying first class, jumping into five star hotels and buying the state of the art latest cars, they don’t save cost, but when it has to do with paying dividend to shareholders, they will bring up argument on why they will not pay dividend” Okezie said.
Emphasizing on why companies CEO should embark on cost saving devices, the PSAN national coordinator said that houses of most CEO’s could be mistaken as car marts due to the fleet of cars in their garages, most of which have remained unused and are depreciating.
Stories by Bonny Amadi