CORPORATE GOVERNANCE
EOH could be flirting with a breach of King guidelines
EOH may be flirting with a breach of corporate governance principles by appointing Asher Bohbot — founder and former CEO of the technology group – as nonexecutive chairman, analysts say. EOH said on Monday that Bohbot, who stepped down as CEO in May 2017 to take a six-month sabbatical, had replaced Sandile Zungu as nonexecutive chairman. Bohbot rejoined the company in December. However, the King report on corporate governance recommends a three-year cooling-off period before a former CEO can be considered for chairman. This is partly because that person may unduly influence the new CEO, leading to clashes on strategy, or might resist reviews of decisions taken under their tenure as CEO. "The JSE keeps a sharp eye on companies’ ticking of the boxes and application of the principles and practices [of the King codes], so it would be that one can actually substantiate or motivate the decision," said Annamarie van der Merwe, CEO at iThemba and a member of the King committee. However, a c...
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