Absa has defended its recruitment policy saying it is pursuing a transformation strategy and its top brass comprises Africans, Indians and coloureds too.
Last week black executives opposed Absa CEO Arrie Rautenbach's plan to remove Saviour Chibiya, head of regional operations, in addition to changes to the group's executive structure announced in April.
Absa on Friday also clarified conflict of interest concerns after Christine Wu's appointment as head of Everyday Banking, saying the relationship between Rautenbach and Wu's husband, David Fine, a partner at McKinsey & Company, London, is purely a professional one.
“Wu’s partner has resigned from McKinsey & Co, London, and is serving his notice until the end of August 2024. He has already disengaged from all projects related to Absa, maintaining the integrity of our partnership.”
Absa said Wu does not participate, in any capacity, in Absa’s evaluation of bids submitted by McKinsey & Co, “ensuring the independence and objectivity of our decision-making processes.”
Last week insiders linked Wu's appointment to Fine who had supported Rautenbach in drawing up the bank's strategy. They also allege Wu has never led a retail bank in her career and has only been at Absa since 2019.
The group said executive appointments are strategically designed to propel Absa's growth objectives and fortify its position in the market after Rajal Vaidya's appointment as interim chief risk officer at close to 60 years of age.
“These appointments not only support our commitment to diversity, equity, and inclusion, but also align with our robust talent management framework and succession planning processes. Candidates are rigorously evaluated based on technical expertise, leadership qualities, cultural adaptability, and alignment with our diversity, equity, and inclusion principles, ensuring a holistic approach to talent selection and development.”
Vaidya said he was appointed as interim group chief risk officer on April 26, having worked for the group since 2007.
“He has over 29 years of international experience, spanning multiple geographies covering Asia, the Middle East, and Africa in business and risk roles. Prior to joining Barclays and Absa, Rajal worked for 17 years with Citibank, where his last role was as Citigroup senior credit officer and chief risk officer for Citifinancial India.”
Absa said the group's retirement age is 63.
“Absa continues to pursue transformation, diversity and inclusion as an integral part of our appointments and promotions across all levels of the organisation”.
The bank said in line with its empowerment objectives, its most recent top management appointments advance diversity, with African, Indian and Coloureds (AIC) now comprising 62% of the Absa Group executive committee. The number compares with 46% five years earlier.
“In 2023, 83% of new hires in senior management were AIC individuals, with 47% of those being women. In middle management, 87% of new hires were AIC individuals and 47% women. For junior management, AIC individual hires constituted 96%, of which 77% were women, reflecting our commitment to creating a diverse and inclusive workforce at all levels”.
Absa came under fire in 2022 for appointing Rautenbach to replace Daniel Mminele, its first black CEO, who lasted only 16 months in the role after clashing with the board over strategy and direction.
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