Africa-Press – South-Africa. The Black Management Forum (BMF) has added its voice to the growing discontent about the appointment of a white CEO at Absa.
The BMF said that while it notes the institutional knowledge and experience that Arrie Rautenbach has, it has a “serious concern” about the reversal of transformation at Absa, especially now that white males occupy both the CEO and financial director (FD) roles. It was also concerned about the representation of black Africans on Absa’s group executive committee (Exco). “What is not pleasing about this appointment is the maintenance of white male power in the CEO position and the absence of more Africans in the bank’s exco. This appointment has been made by a predominantly black board which has not ensured that a black CEO be appointed,” the BMF said in a statement on Monday. After Rautenbach’s appointment, Jason Quinn, who had been caretaking in the highest seat, went back to his role as Absa’s FD. In turn, Punki Modise, the interim FD, stepped down from that role to become the interim chief executive of Absa’s Retail and Business Banking unit. Modise is the only black South African executive in the group’s exco. But there are other blacks and Africans on the exco, including Zambian economist Saviour Chibiya, who is the group executive of Absa Regional Operations, the chief compliance officer, Akash Singh, and the chief audit executive, Prabashni Naidoo. The BMF said Absa needed to make more deliberate efforts in grooming black professionals for these roles, and ensuring that when the time arrives, nothing stands in the way of their appointment. More concerned stakeholders want to meet with Absa’s board”The BMF will be seeking to meet with the board and the CEO to understand further how they reached this point, and what their plans are in driving transformation moving forward,” it added. The BMF is the second big institution requesting to meet with the Absa board to discuss Rautenbach’s appointment. On Friday, the Public Investment Corporation (PIC) also expressed “downright disappointment” with the board’s decision. It said it has requested an urgent meeting with the Absa board to discuss its transformation strategy and plan. The state-owned asset manager – which has over R1.9 trillion in assets under management, including civil servant pensions – owns more than 5% of Absa.Meanwhile, analysts said if one sets aside questions about Absa’s commitment to transformation, Rautenbach was an obvious choice to take Absa to new heights.Absa defends its decisionAbsa said it has noted the views and concerns expressed by some of the important stakeholders and it will engage them constructively.However, it added that in deciding who the next permanent CEO should be, its board was clear in its reasons. It looked at Rautenbach’s track record in business performance and his ability to deliver on group objectives. It added that both the new CEO and the board are “fully aligned” on the principle of driving transformation across all levels within the group.”Arrie has a demonstrable track record of appointing diverse teams at the bank – both in terms of race and gender. The team that he most recently assembled in retail and business banking led to the commercial turnaround of the group’s largest business unit,” said Absa in a written response.
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