Old Mutual suspends CEO Peter Moyo over ‘breakdown in trust’
Financial services group Old Mutual says it has suspended CEO Peter Moyo over a “breakdown in trust”.
Following a series of talks, the Old Mutual board decided that “there has been a material breakdown in trust and confidence between him and the board”.
The board, chaired by former finance minister Trevor Manuel, had suspended Moyo with immediate effect, it said.
COO Iain Williamson has taken over as acting CEO.
The announcement was “totally unexpected”, said Cratos Capital trader Greg Davies.
It added to the list of bad surprises local investors had had to contend with this week, Davies said, citing Sasol’s announcement of cost overruns in the US and Massmart’s warning of a sharp decline in earnings.
Moyo rejoined Old Mutual in June 2017 as CEO of Old Mutual Emerging Markets, and later of Old Mutual, having left in 2005 to take over at Alexander Forbes.
According to Old Mutual’s remuneration report for the year ended December 2018, Moyo’s total compensation increased by 32% to R50.5m. The biggest contributor to the increase was the managed separation incentive plan, for which he was awarded R15.4m.
Old Mutual undertook a major restructuring during 2018 referred to as the “managed separation”. This resulted in the conglomerate reducing its stake in Nedbank, separately listing its UK Wealth division as Quilter on the London Stock Exchange, and relisting its emerging-markets business in Johannesburg under the Old Mutual brand.