OPINION / EDITORIALS
EDITORIAL: The big cost of the Absa chaos
Former Absa CEO Daniel Mminele walked away with R62m for just 16 months’ work
For all the flak Absa is getting for picking Arrie Rautenbach as CEO, consider just how much picking the wrong CEO has already cost investors.
Last week, Absa shareholders, including the Public Investment Corp (PIC), flayed the bank for its decision to appoint Rautenbach, arguing that hiring a white CEO was a “downright disappointment” and a “missed opportunity” to transform the bank.
But Absa’s new annual report reveals that its ill-fated earlier decision to appoint central banker Daniel Mminele — who quit after just 16 months over strategic differences with the board — to the post cost it R33.4m last year.
Mminele worked for only four months last year, yet scored R3m in salary for that. But he was awarded another R30.4m for “termination of employment”, including separation payments, notice payments and accrued leave.
It meant Mminele’s remuneration for just 16 months’ work was disclosed as R62m.
Clearly, the chaos in Absa’s boardroom is costing investors plenty — now does that not worry the PIC?