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Was at a quick meeting at the Lagos Polo Club with a former bank MD when his phone rang.

He had sent for diesel, and when they told him how much they were able to secure it for, he whistled.

He then looked up at me and said, “Edgar, I miss corporate cover.”

Now, what is corporate cover, you may ask?

Corporate cover is the benefit that accrues to an executive in an institution.

It starts from the mundane to the outrageous.

This is where the institution covers your lifestyle in its entirety, and in some cases,t he benefits also extend to your family.

From housing to power supply in the house, maids, yearly car changes, huge wardrobe allowances, extensive medical cover, international travel, tickets to exotic global events like sports and music, and even trips just to go and gape at the UN General Assembly.

From start-ups to giant quoted companies, this issue of corporate cover pervades.

For start-ups, the financial weight of corporate cover often stunts speedy take-off and growth, as promoters layer themselves with benefits that sometimes come straight from working capital.

This sucks up much-needed liquidity and stifles the business.

For large firms, its consequences, although not immediately visible, can be traced more to psychological impact.

Corporate cover for a tier-one bank, for example, may not be up to 5% of its massive profits. But where it bites the most is in the psychological effect on its top management cadre.

So for a big bank with, say, 10 executive directors who are all enmeshed in corporate cover, what you often get is a loss of hunger on their part.

They lose focus while wallowing in the luxury of corporate cover.

You see them at huge international events that have nothing to do with their business. You see them at exclusive global private clubs where they preen like peacocks instead of networking. You see them changing cars — sometimes two new cars annually, depending on the institution. Then you see them hobnobbing with top celebrities.

From there, some of them become lazy and complacent.

They can no longer push, as they see no reason to roll up their sleeves and work. Once they reach the AGM position, it becomes autopilot for some of them.

Who suffers from this, apart from the business itself?

The shareholders.