Absa head Arrie Rautenbach to step down after two years at the ...

Absa’s chief executive Arrie Rautenbach has agreed to take early retirement after discussions with the board

Absa’s chief executive Arrie Rautenbach has agreed to take early retirement after discussions with the board, according to a statement released by the lender on Monday. 

Rautenbach, who is 59,  stepped into the job in March 2022, taking over from Daniel Mminele, who also served a short stint at the helm — resigning in April 2021 after being appointed in January 2020.

Rautenbach’s early retirement will be effective from 15 April 2025, Absa said in a statement. He will, however, cease to perform his duties from 15 October this year, and will have to abide by a six-month contractual notice period which will be served as garden leave.

“The board, on behalf of the group, thanks Arrie for his commitment and extensive contribution to the group over a career that spanned over 27 years with the organisation and wishes him well in his retirement,” the statement read. 

Rautenbach’s appointment was criticised because it was regarded as yet another blow to transformation. 

By the time Mminele joined Absa in 2020, the bank had already faced scrutiny over its reported transformation blunders, including Phakamani Hadebe being allegedly overlooked to head the group’s corporate and investment banking unit. The incident sparked a walkout by black professionals at Absa and Hadebe resigned from the bank, the Mail & Guardian previously reported. 

But Absa has maintained that hiring Rautenbach was the right decision, given his track record.

The Public Investment Corporation, which is an Absa shareholder, released a statement at the time that called Rautenbach’s appointment “yet another missed opportunity for the Absa board to publicly demonstrate its commitment to purposefully transform the banking group and to advance diversity, inclusivity and racial and gender equity at the most senior levels of organisation”.

The Black Management Forum said the decision to hire Rautenbach reflected “the maintenance of white male power”.

Absa’s share price has fallen by 7% over the past year. 

Charles Russon has been appointed as the interim chief executive with effect from 15 October, subject to regulatory approval. 

Russon has been the chief executive of Absa’s corporate and investment banking segment since 2018 and a group executive committee member since 2014.

He joined Absa Capital in 2006 as chief financial officer and has held numerous senior positions, including regional head of finance for Absa Group. 

“Charles’ appointment will enable a smooth transition, while the board conducts a diligent search for a new permanent group chief executive,” Monday’s statement said.