The stock plummeted by 4 percent by the close on the JSE. The stock traded in the red for all of Tuesday after the news of the CEO stepping down which Absa eventually confirmed. Picture: Waldo Swiegers, Bloomberg.
The stock plummeted by 4 percent by the close on the JSE. The stock traded in the red for all of Tuesday after the news of the CEO stepping down which Absa eventually confirmed. Picture: Waldo Swiegers, Bloomberg.

Absa shares plummet after news of CEO’s departure

By Dieketseng Maleke Time of article published Apr 20, 2021

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It’s been a tough day at the office for the Absa board of executives and for its investors.

The bank’s shareholders dumped the company’s stock today, on the back of the surprise departure of the banking group’s newly minted chief executive, Daniel Mminele.

The stock plummeted by 4 percent by the close of the JSE. The stock traded in the red for all of Tuesday after the news of the chief executive stepping down, which Absa eventually confirmed.

Mminele’s departure comes six weeks after the death of Absa’s former deputy chief executive Peter Matlare, who died from Covid-19-related complications on March 7.

The group announced in a statement that its financial director, Jason Quinn, has been appointed as the interim group chief with effect from April 20.

Mminele, a former deputy central bank governor, took the reins from Maria Ramos who left the bank in January 2020 after working for the bank for10 years.

Mminele was tasked with delivering on a turnaround strategy that had largely been laid down before his arrival.

The group said Mminele would be leaving his position on April 30.

The bank cited the reason for his departure as: “The parties have not managed to achieve alignment in relation to the group’s strategy and the culture transformation journey”.

Absa’s share price fell 4% to R121, the biggest one-day drop the group has had since February 23.

BUSINESS REPORT ONLINE

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