The HRD (Human Resource Development) Ministry has stated that a PhD is a must for those corporate executives applying for the post of director at the Indian Institute of Management (IIM).

Under the IIM Act, executives who have been in senior management roles for 15 years can now be appointed as directors, as reported by Indian Express.

The newly codified terms and conditions of the service of directors for all 20 IIMs, state: The applicant shall be a distinguished academic with PhD or equivalent having at least fifteen years teaching or research experience and shall have worked as a full Professor at a reputed institution for at least seven years; or shall have industry experience at a higher level for at least fifteen years.”

The government, however, made it clear that even senior executives must have a PhD degree. Teaching experience and professorship is not mandatory for people with 15 years of industry experience.

Corporate executives have headed the top business schools, but they have been very few - case in point Rajiv J Matthai, the first full-time director of IIM-Ahmedabad in 1965, and Subir Chowdhury, who headed IIM-Calcutta in the 1990s.

The IIM Act that came into effect on 13 January gives statutory powers to all 20 IIMs for the appointment of directors, chairpersons, members of the Board of Governors as well as to award degrees in place of diplomas.

Before the Act came into place, there were no fixed rules for the appointment of directors, but now, there is a uniform criterion.