{"id":31487,"date":"2025-04-01T16:11:11","date_gmt":"2025-04-01T16:11:11","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=31487"},"modified":"2025-04-01T19:29:57","modified_gmt":"2025-04-01T19:29:57","slug":"absa-groups-leadership-shuffle-executive-pay-rises-amid-reputational-challenges","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/absa-groups-leadership-shuffle-executive-pay-rises-amid-reputational-challenges\/","title":{"rendered":"Absa Group’s leadership shuffle: Executive pay rises amid reputational challenges"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

Absa Group faced a rocky leadership shuffle that left its reputation bruised in 2024, while it paid its executive team handsomely, its latest annual report shows.<\/p>\n

Interim group CEO Charles Russon pocketed R35.47 million, a 12.1% jump from R31.64m in 2023, and new group financial director Deon Raju earned R22.09m in his debut year. Group chairman Sello Moloko laid bare the challenges that tested the bank\u2019s resilience amid a shifting African banking landscape.<\/p>\n

The report details a 10% increase in headline earnings and a return on equity (RoE) of 14.8%, driven by a stronger second half.<\/p>\n

Other executive payouts include Arrie Rautenbach, who ceased being group CEO on October 15, 2024, receiving R8.44m for 2024, down 78.9% from R40.03m in 2023, with no short-term or long-term incentives awarded.<\/p>\n

Christopher Snyman, interim group financial director from November 22, 2023 to April 26, 2024, was paid R11.02m for 2024, up 14.2% from R9.65m in 2023. Jason Quinn, group financial director until November 22, 2023, received R6.49m for his partial 2023 service, with no 2024 figure as he had exited.<\/p>\n

Earlier this week Business Report<\/em> r<\/a>eported that at Absa\u2019s rival, Standard Bank Group CEO Sim Tshabalala\u2019s single-figure remuneration increased 7.1% to R89.22m for the year to December 31, while that of Kenny Fihla<\/a>, who resigned this month to join Absa, fell 3.7% to R67.29m. <\/p>\n

Moloko, in his chairman\u2019s message, addressed the reputational fallout from Rautenbach\u2019s exit and media scrutiny.<\/p>\n

\u201cWe acknowledge that these developments strained our reputation and our relationships with some stakeholders, We have reflected deeply as a board and actively worked with the executive team on the necessary changes to restore confidence in and strengthen our group,\u201d he said.<\/p>\n

The board appointed Kenny Fihla as permanent CEO, effective June 17 with Moloko noting: \u201cKenny brings strong pan-African banking experience and a proven track record in delivering results in challenging times.\u201d<\/p>\n

Old Mutual chief investment officer, Siboniso Nxumalo<\/b>, and head of equities research, Meryl Pick, on Tuesday said that Fihla was a solid appointment for Absa.<\/span><\/p>\n

The leadership changes followed a tough first half, with financial performance below expectations due to economic strain and a credit loss ratio (CLR) outside the through-the-cycle range.<\/p>\n

Russon, who took the interim CEO role on October 15, said the bank saw a second-half recovery. \u201cRevenue growth accelerated, particularly our non-interest revenue, and while some of this is due to a low base from the second half of 2023, I am encouraged by the early signs,\u201d he said.<\/p>\n

This after Absa cut costs and took risk management actions in South Africa\u2019s retail portfolios, alongside a reduction in interest rates, among other factors.<\/p>\n

Meanwhile, Absa’s management said in South Africa, the Government of National Unity brought cautious optimism.  However, Moloko said, \u201cUncertainties remain around the coalition\u2019s capacity to align different policy agendas and drive actionable outcomes.\u201d<\/p>\n

In Absa\u2019s regional operations, such as Kenya and Mozambique, political tensions and currency depreciation posed challenges. The group maintained a Common Equity Tier 1 ratio of 12.6%.<\/p>\n

The report notes two new board appointments, Sindi Zilwa and Zarina Bassa, effective  April 1, to strengthen governance. \u201cWe are also pleased with the diversity of skills and ideas that comes with their appointment,\u201d Moloko said.<\/p>\n

Russon, looking to 2025, warned of ongoing uncertainty, saying, \u201cThe operating environment is expected to remain extremely uncertain in 2025, particularly given the sweeping and volatile changes being announced by the new US administration.\u201d <\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Absa Group faced a rocky leadership shuffle that left its reputation bruised in 2024, while it paid its executive team handsomely, its latest annual report shows.Interim group CEO Charles Russon pocketed R35.47 million, a 12.1% jump from R31.64m in 2023, and new group financial director Deon Raju earned R22.09m in his debut year. Group chairman Sello Moloko laid bare the challenges that tested the bank\u2019s resilience amid a shifting African banking landscape.The report details a 10% increase in headline earnings and a return on equity (RoE) of 14.8%, driven by a stronger second half.Other executive payouts include Arrie Rautenbach, who ceased being group CEO on October 15, 2024, receiving R8.44m for 2024, down 78.9% from R40.03m in 2023, with no short-term or long-term incentives awarded.Christopher Snyman, interim group financial director from November 22, 2023 to April 26, 2024, was paid R11.02m for 2024, up 14.2% from R9.65m in 2023. Jason Quinn, group financial director until November 22, 2023, received R6.49m for his partial 2023 service, with no 2024 figure as he had exited.Earlier this week Business Report reported that at Absa\u2019s rival, Standard Bank Group CEO Sim Tshabalala\u2019s single-figure remuneration increased 7.1% to R89.22m for the year to December 31, while that of Kenny Fihla, who resigned this month to join Absa, fell 3.7% to R67.29m.\u00a0Moloko, in his chairman\u2019s message, addressed the reputational fallout from Rautenbach\u2019s exit and media scrutiny.\u201cWe acknowledge that these developments strained our reputation and our relationships with some stakeholders, We have reflected deeply as a board and actively worked with the executive team on the necessary changes to restore confidence in and strengthen our group,\u201d he said.The board appointed Kenny Fihla as permanent CEO, effective June 17 with Moloko noting: \u201cKenny brings strong pan-African banking experience and a proven track record in delivering results in challenging times.\u201dOld Mutual chief investment officer, Siboniso Nxumalo, and head of equities research, Meryl Pick, on Tuesday said that Fihla was a solid appointment for Absa.The leadership changes followed a tough first half, with financial performance below expectations due to economic strain and a credit loss ratio (CLR) outside the through-the-cycle range.Russon, who took the interim CEO role on October 15, said the bank saw a second-half recovery. \u201cRevenue growth accelerated, particularly our non-interest revenue, and while some of this is due to a low base from the second half of 2023, I am encouraged by the early signs,\u201d he said.This after Absa cut costs and took risk management actions in South Africa\u2019s retail portfolios, alongside a reduction in interest rates, among other factors.Meanwhile, Absa’s management said in South Africa, the Government of National Unity brought cautious optimism.\u00a0 However, Moloko said, \u201cUncertainties remain around the coalition\u2019s capacity to align different policy agendas and drive actionable outcomes.\u201dIn Absa\u2019s regional operations, such as Kenya and Mozambique, political tensions and currency depreciation posed challenges. The group maintained a Common Equity Tier 1 ratio of 12.6%.The report notes two new board appointments, Sindi Zilwa and Zarina Bassa, effective\u00a0 April 1, to strengthen governance. \u201cWe are also pleased with the diversity of skills and ideas that comes with their appointment,\u201d Moloko said.Russon, looking to 2025, warned of ongoing uncertainty, saying, \u201cThe operating environment is expected to remain extremely uncertain in 2025, particularly given the sweeping and volatile changes being announced by the new US administration.\u201d\u00a0BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":31489,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/31487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=31487"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/31487\/revisions"}],"predecessor-version":[{"id":31488,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/31487\/revisions\/31488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/31489"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=31487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=31487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=31487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}