Absa CEO Daniel Mminele to step down, bank cites ‘strategy and culture transformation non-alignment’
Absa CEO Daniel Mminele is stepping down, effective at month-end, the banking group announced on Tuesday.
In a statement to Stock Exchange News Service (Sens), the group said: “It has become clear to the parties there is non-alignment on matters of strategy and culture transformation.“
In a separate statement after the announcement, Mminele said: “It is regrettable we should have had to part ways so soon on our journey. It is, however, important for the chief executive to be in complete alignment with the board on critical issues such as strategy and culture.”,
The Absa Group and Absa Bank Boards have appointed Jason Quinn as interim Group CEO with immediate effect. Quinn has been group financial director since August 2016.
“The boards wish to thank Mr Mminele for his service and the contribution he made in a time of great challenge for the group and society during the Covid-19 pandemic. We wish him all the best in his future endeavours,” the group said.
TimesLIVE reported earlier on Tuesday that the split was imminent, with speculation in the market that chair Wendy Lucas-Bull and the board were unhappy with changes Mminele wanted to make at the bank.
Mminele, who took over as CEO in January 2020 after 20 years at the Reserve Bank, became the first black person to lead Absa. When he took office, he was tasked by the board with reviewing the strategy Absa had put in place in 2018 after its divorce from UK-based Barclays, and Lucas-Bull had told staff he had an “open mandate”.
On Tuesday afternoon, in the group’s statement after the Sens announcement, Lucas-Bull said: “The board was very excited about Daniel’s appointment and the positive role he was going to play at Absa. It is a matter of considerable regret that we reached this position.
“The parting of ways merely reflects divergent professional views and approaches, and is on a ‘no fault’ basis. The board has conveyed to Mr Mminele its continued high regard for his competence and integrity. The parties believe this course is in the best interests of the company and Mr Mminele.
“This was a very difficult decision that was not reached lightly.
“Daniel and Absa have agreed their interests are best served by this parting, with an appropriate separation arrangement.
“I would like to thank Daniel for his service, leadership and contribution he made in a time of great challenge for the group and society more generally during the pandemic. We wish him all the best in his future endeavours.”
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