Pandey continues to be CEO of Shikhar Insurance in shady way

KATHMANDU, OCTOBER 21: Deep Prakash Pandey, who has served as the Chief Executive Officer (CEO) of Shikhar Insurance for the last two decades, has been reappointed for another four-year term. The company’s board of directors made the decision during its 340th meeting last Thursday, following prior approval from the Nepal Insurance Authority a month earlier.

Pandey is among the longest-serving CEOs in Nepal’s insurance sector. While current regulations limit a CEO’s tenure to a maximum of two terms, the authority has repeatedly granted him exceptions, allowing his continued leadership.

Section 57 of the Insurance Act, 2079, states that a CEO’s tenure cannot exceed four years, with the possibility of one reappointment. However, Pandey has held the position continuously for the last two decades.

He was initially appointed on July 23, 2004, as both a permanent employee and CEO. In 2012, the Insurance Authority introduced corporate governance guidelines capping a CEO’s tenure at two terms, requiring permanent CEOs to shift to contractual employment. Despite these rules, Pandey remained a permanent employee until October 27, 2016, when he switched to a contractual role. That appointment was intended to be counted as his first term under the new governance framework.

On November 26, 2020, he was reappointed for a second term. Although his two terms were officially completed, the board has now reappointed him for another four years, with the authority granting its approval despite regulatory limits.

The Insurance Authority has not provided a definitive explanation of which term this appointment represents. The regulatory branch cited section 25 of the 2080 Corporate Governance Directive, confirming that Shikhar Insurance submitted the required documents—such as the contract, qualifications, business plan, citizenship, and tax clearance—21 days before the appointment, in compliance with regulations.

Spokesperson Sushil Dev Subedi stated that the authority considers this Pandey’s second term. However, under the governance framework, this should technically be his third. The guidelines limiting a CEO’s tenure were introduced to prevent conflicts of interest and financial risks from prolonged leadership.

Some internal voices within the authority have criticized the decision, questioning its legality. They allege that Pandey has used his influence to secure repeated extensions and did so again for this latest reappointment. Extending his tenure to a total of 24 years raises serious concerns about regulatory compliance and governance integrity within Nepal’s insurance sector.