The Public Investment Corporation (PIC) has slammed Absa over perceived boardroom instability and its “missed opportunity” to demonstrate a commitment to transformation.
This comes after the bank announced late last month that it had appointed one of its seasoned executives, Arrie Rautenbach, as its new CEO.
The PIC greeted this with “downright disappointment”.
“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 expected 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 SA society.”
Referring to the April 2021 resignation of Daniel Mminele, who was the first black executive to lead Absa, the PIC said it had previously recorded its disappointment to the board about apparent instability at executive level.
The PIC said it has requested an urgent meeting with the Absa board 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.”
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PIC slams Absa CEO appointment, demands transformation action plan
Image: Mike Hutchings
The Public Investment Corporation (PIC) has slammed Absa over perceived boardroom instability and its “missed opportunity” to demonstrate a commitment to transformation.
This comes after the bank announced late last month that it had appointed one of its seasoned executives, Arrie Rautenbach, as its new CEO.
The PIC greeted this with “downright disappointment”.
“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 expected 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 SA society.”
Referring to the April 2021 resignation of Daniel Mminele, who was the first black executive to lead Absa, the PIC said it had previously recorded its disappointment to the board about apparent instability at executive level.
The PIC said it has requested an urgent meeting with the Absa board 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.”
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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