Absa in search of seventh CEO in less than seven years
Absa is looking for yet another CEO after incumbent Arrie Rautenbach opted for early retirement after “discussions with the board”, following weeks of speculation that he did not enjoy the support of his executive team.
He will cease to be the CEO and an executive director of the boards from October 15, followed by a six-month contractual notice period that will be served as garden leave.
He will serve the group in his current role until October 15.
“The board, on behalf of the group, thanks Arrie for his commitment and extensive contribution to Absa over a career spanning more than 27 years and wishes him well in his retirement,” it said.
Charles Russon will become interim CEO of Absa Group and Absa Bank from October 15, subject to regulatory approval. He will also become an executive director on the boards. Russon becomes the sixth CEO, either on an acting or permanent CEO of Absa since 2019.
The announcement means Absa, whose share price and financial performance trails that of peers, is in search of its seventh CEO, whether in a permanent or acting capacity, in just six years.
When Maria Ramos retired in 2019 after a decade in the role, she was temporarily replaced by René van Wyk, who acted in the role for a year. The lender then roped in former SA Reserve Bank deputy governor Daniel Mminele as its CEO.
He lasted in the role for just 16 months before differences between him and the board emerged over the strategic direction of the country’s third-biggest banking group by assets.
Respected banker Jason Quinn then acted in the role until Rautenbach was confirmed as the new CEO in 2022.
Rautenbach’s early retirement comes just months after Nedbank poached Quinn as its CEO, succeeding Mike Brown.
The leadership instability at the bank is in stark contrast to its peers. Sim Tshabalala has been at the helm of Standard Bank for a decade, while Brown led Nedbank for 14 years until his retirement earlier in 2024.
FirstRand is also under new leadership after Mary Vilakazi took over, following a few years as COO.
The Sunday Times has reported extensively about how Rautenbach lost the confidence of his leadership team, an allegation the bank has denied.
Russon has been CEO of Absa’s Corporate and Investment Bank (CIB) since 2018 and a group executive committee member since 2014. He joined Absa Capital in 2006 as CFO and has held numerous senior roles in the group, including regional head of finance for Absa Group, COO for Absa Group and CEO: engineering services for Absa Group.
He completed his articles with KPMG and then worked for Merrill Lynch in London and Deutsche Bank in London and Frankfurt. He is a member of The SA Institute of Chartered Accountants and holds a BCom from Rhodes University.
Yasmin Masithela will become interim CEO of Absa’s CIB effective from October 15. She is currently managing executive: corporate transactional banking at CIB and has been in that role since May 2019.
She previously held positions on the group executive committee as CEO strategic services and chief compliance officer.
Masithela holds a BA and LLB (University of Cape Town), a higher diploma in company law and an LLM.
Updated: August 19 2024
The story has been updated with new information
