Absa has received regulatory approval to appoint Charles Russon as its interim group Chief Executive Officer (CEO).
This move comes after the bank’s current CEO, Arrie Rautenbach said in August that he had decided to take early retirement.
Rautenbach noted that he would take an early package and would not stay for the two-and-a-half years that remained on his contract.
Absa informed shareholders that the bank had received regulatory approval for the appointment of Russon as Interim Group CEO. The bank also said that Yasmin Masithela had been given approval to become the Interim Chief Executive of Absa’s corporate and investment division.
This position was held by Russon and will now fall to Masithela.
The bank said that both appointments will be effective October 15, 2024.
Absa further added that Russon will replace Rautenbach as a member of Absa’s Risk and Capital Management Committee, Social Sustainability and Ethics Committee, Group Credit Risk Committee and the Information Technology Committee.
Rautenbach was forced out?
Rautenbach has been with Absa for over 27 years but took over the role of chief executive in March 2022.
In July, the Sunday Times reported that Rautenbach allegedly "broke down" during a conference with Absa’s senior leaders.
It was reported that during the meeting, a number of Absa executives said they had lost confidence in him and his ability to lead and wanted a black African CEO.
Absa called out the Sunday Times report and said it was a “malicious and sensational distortion” of what really happened at the conference that had around 250 leaders present.
When Rautenbach took over the role of CEO, he replaced Daniel Mminele, who stepped down. Mminele was Absa’s first black CEO.
Black Business Council slams Absa
In August, after Absa announced that Russon would replace Rautenbach, the Black Business Council (BBC) said that it was disappointed that Absa had chosen to appoint another white chief executive as interim CEO.
The BBC said it hoped the bank would have appointed a black person as its interim CEO instead.
The appointment of Russon demonstrated, in clear terms, that Absa did not have a proper succession strategy or plan that included a pipeline of possible succession candidates, the BBC said.
The BBC called on the Absa leadership to ensure that the permanent replacement of Rautenbach is not a white male or anyone from the groups that are overrepresented as per the Employment Equity report.
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