Absa has a new CEO – the sixth in six years

Charles Russon has received regulatory approval to be appointed as interim CEO of Absa Group, becoming the sixth CEO in as many years.

Russon will also replace outgoing CEO Arrie Rautenbach as a member of the Group Risk and Capital Management Committee, Social Sustainability and Ethics Committee, Group Credit Risk Committee and the Information Technology Committee.

Yasmin Masithela replaces Russon as Interim CEO of Absa’s Corporate and Investment Bank.

Both appointments will be effective on 15 October 2024.

Russon joined Absa Capital in 2006 as CFO and has held several senior roles at the group, such as Regional Head of Finance, Chief Operating Officer, and Chief Executive of Engineering Services.

He is a chartered accountant and previously wrote articles for KPMG. He also worked for Merrill Lynch and Deutsche Bank in London and Frankfurt.

Russon takes over from Rautenbach who will enter early retirement on April 15, 2025.

Rautenbach will cease to be the CEO and an Executive Director, effective 15 October 2024 and will serve a six-month contractual notice period, which will serve as his gardening leave before he retires.

Rautenbach’s early retirement comes after the group’s headline earnings per share dropped by 5% to 1,228.4 cents in the first six months of 2024, falling behind its competitors.

Revolving door

Absa has had six CEOs since 2019, with the company struggling to find consistency at the executive level.

Maria Ramos led the group from 2009 until 2019, with René van Wyk taking over as interim leader until 2020.

Former Reserve Bank Deputy Governor Daniel Mminele took over as permanent CEO but only lasted 16 months due to disagreements with the board over the bank’s strategic direction.

Jason Quinn then took on the role on an interim basis until early 2022, when Rautenbach took control of the ship.

• Maria Ramos – March 2009 to February 2009

• René van Wyk – March 2019 to January 2020

• Daniel Mminele – January 2020 to April 2021

• Jason Quinn – April 2021 to March 2022

• Arrie Rautenbach – March 2022 to October 2024

• Charles Russon – October 2024 onward

With its share price and financial performance trailing those of peers, Absa is now searching for its seventh permanent CEO.

Absa, however, is not the only bank under new management.

Harry Kellan has moved from FirstRand CFO to FNB CEO, while Mary Vilakazi was also promoted from FirstRand COO to CEO.

Nedbank is now also under the leadership of former Absa executives.

Quinn took over as Nedbank CEO in May after Mike Brown’s 14 years in charge, while Mminele has been Nedbank’s chairman since last year.

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