Mminele exit: Absa board faces serious questions
The manner in which Absa Group chief executive Daniel Mminele resigned on Tuesday shocked the market.
On Friday, Business Report hinted at a disagreement between the former CEO and the board. “Heated talks” last week failed to result in any agreement. Then on Tuesday morning, Business Live all but confirmed Mminele’s departure.
The bank was forced to issue a statement at 9am, euphemistically titled Discussions with Group Chief Executive, which confirmed that: “Mminele and the Boards [of the Group and the Bank] are working on a suitable separation arrangement and a further announcement will be published shortly after midday.”
It was clear by then that Mminele’s working relationship with the board had deteriorated to such an extent that neither party could see a way forward.
But how did it get to this point less than 16 months into his tenure?
Speculation is rife that Absa Group chair Wendy Lucas-Bull and the board were unhappy with changes Mminele wanted to make to the group’s strategy.
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