Daniel Mminele to step down as Absa CEO after just 15 months
Daniel Mminele is stepping down as Absa Group CEO on 30 April.
Group Financial Director Jason Quinn will take over as interim CEO.
Mminele stepped into the hot seat on 15 January 2020, leading the Absa Group through the Covid-19 crisis.
The former South African Reserve Bank deputy governor was its first black CEO.
"The parties have not managed to achieve alignment in relation to the group’s strategy and the culture transformation journey" reads Absa's statement.
Absa Group Chair Wendy Lucas-Bull said the parting of ways "merely reflects divergent professional views and approaches, and is on a 'no fault' basis".
Bruce Whitfield grills the chairperson on what went so badly wrong with the board's decision making with this appointment.
The board is very sad and we really regret having to be in the position that we're in.Wendy Lucas-Bull, Chairperson - Absa Group
As you said, it was a very long courtship, so we were very excited and energised when Daniel joined.Wendy Lucas-Bull, Chairperson - Absa Group
Lucas-Bull expands on what Absa means by "a divergence of views" on strategy.
Strategy is not just the overall direction... in terms of aspiration. It's more around how do you implement that strategy and how do you adjust that strategy.Wendy Lucas-Bull, Chairperson - Absa Group
That includes the required pieces around what is the operating model; what does the exco structure look like... How do you implement individual changes to streams of strategy in a way that maintains alignment both between the CEO and the board, and in terms of getting the alignment in the organisation.Wendy Lucas-Bull, Chairperson - Absa Group
Our concern was ongoing uncertainty at the level particularly of operating models and priorities in terms of the organisation, where we had the differences.Wendy Lucas-Bull, Chairperson - Absa Group
The Reserve Bank is a fundamentally different institution to the one into which Daniel Mminele was parachuted, notes Whitfield.
How realistic were the expectations the board had of a formal central banker coming into Absa?
We are going to be doing quite a bit of introspection on lessons learned here. I think one of them will be the extent of difference between the environment that we are in and the one Daniel was used to over a long successful period of 20 years.Wendy Lucas-Bull, Chairperson - Absa Group
They are very different in scope and they're very different in size. Absolutely, that will be one of the reflections we'll take out of it.Wendy Lucas-Bull, Chairperson - Absa Group
Bruce Whitfield also briefly discusses Mminele's early departure with Kokkie Kooyman, Portfolio Manager at Denker Capital.
Banking is critical to the country and Absa's one of the largest banks... It does seem as if the board got this one wrong... Mminele was parachuted into a team that were already gelling well and had already devised a strategy...Kokkie Kooyman, Portfolio Manager - Denker Capital
Listen to the discussion on The Money Show:
This article first appeared on CapeTalk : Daniel Mminele to step down as Absa CEO after just 15 months
Source : Absa
Financial Mail Editor Rob Rose opens up about his attitude to money (hopes and fears, successes and failures, etc.).Read More
Bruce Whitfield interviews Dr Zoltan Erdey, author of "Going for Gold: The South African's Guide to Investing in Precious Metals".Read More
Can local businesses substitute 20% of their imports? Bruce Whitfield interviews Peter Attard Montalto of Intellidex.Read More
The Money Show’s Bruce Whitfield interviews Patrice Rassou, Chief Investment Officer at Ashburton Investments.Read More
The Money Show’s Bruce Whitfield interviews Redefine Properties CEO Andrew König.Read More
The Money Show’s Bruce Whitfield interviews Chris Schutte, CEO at Astral Foods.Read More
Personal finance expert Warren Ingram has sound advice on the timing of offshore investment decisions.Read More
The Money Show's Bruce Whitfield interviews Jessica Spira, Sector Head for Healthcare and Hospitality at Rand Merchant Bank.Read More
Dr Patrick Soon-Shiong is currently busy with clinical trials for the Covid-19 vaccine he's developed, says Prof. Shabir Madhi.Read More
Investigative journo Pauli Van Wyk says four SA insurance giants have lost R944m in total by using Insure Group as intermediary.Read More