Appointment of the Absa Group CEO

1 April 2022

In correspondence with the ABSA Group board, the Public Investment Corporation (PIC) yesterday expressed its downright disappointment with the board’s appointment of the new Group Chief Executive.

The PIC believes this is yet another missed opportunity for the Absa board to publicly demonstrate its commitment to purposefully transform the banking group and to advance diversity, inclusivity, and racial and gender equity, at the most senior levels of organisation.

As a significant shareholder, the PIC had previously recorded its disappointment  to the board about the apparent instability at executive level following the departure of its former CEO in April 2021 – a long-awaited, black senior hire, who purported, had divergent professional views and approaches to that of the board..

The PIC expected that the board would have placed the required focus on transformation in the process to recruit a new CEO.  This should be a key business risk for the board, considering the nature and breadth of services ABSA provides to South African society.

Initiatives to advance transformation in large corporations should expressly be linked to incentive structures of the organization, with a significant weight accorded to the Executive and senior management, to ensure that the requisite commitment and accountability take full effect in practice.

The PIC has requested an urgent meeting with the ABSA board and for it to present its transformation strategy and -plan. Transformation should be a core strategy of the bank, driven from board level. This should incorporate a clear commitment, with clear targets for all levels of management.

Issued by PIC, 1 April 2022