The Wall Street Journal-20080116-TMB Bank PLC- Board Will Consider Removing Chief Executive
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TMB Bank PLC: Board Will Consider Removing Chief Executive
The next board meeting of TMB Bank PCL will consider whether to remove Chief Executive and President Subhak Siwaraksa, the chairman of the Thailand-based bank said yesterday. The board also will review TMB's business plan and strategy at the meeting, which is planned for Jan. 28 or Jan. 29, Chairman Somchainuk Engtrakul said. Mr. Somchainuk didn't say why Mr. Subhak's role is being reviewed. However, a change is widely expected after Dutch financial-services firm ING Groep NV took a 30% stake to become TMB's largest shareholder as part of a $1.1 billion recapitalization. The Ministry of Finance's interest in Thailand's fifth-biggest bank by assets was diluted to 26.1% from 31% and DBS Group Holdings' stake fell to 6.8% from 16.1%. "Based on the shareholding structure, both major shareholders [the finance ministry and ING] must reach mutual agreement on the CEO and president posts. If they don't agree on the posts, then a new candidate should be proposed," Mr. Somchainuk said. Mr. Subhak said he is willing to accept any decision from the board. The bank's board yesterday appointed two existing directors, Phillippe Damas and Willem Frederik Nagel, who represent ING, as members of its executive board. TMB's board also has appointed Sathit Limpongpan, the finance ministry's deputy permanent secretary, as a member of the board and executive board, Mr. Subhak said.
