Absa Appoints Sixth CEO in Six Years as Leadership Turnover Continues

Charles Russon has received regulatory approval to take over as the interim CEO of Absa Group, making him the sixth person to hold the role in as many years. Russon’s new responsibilities will include membership on key committees within the group, such as the Group Risk and Capital Management Committee, the Social Sustainability and Ethics Committee, the Group Credit Risk Committee, and the Information Technology Committee. His appointment follows the departure of CEO Arrie Rautenbach, with both transitions set to take effect on October 15, 2024.

Yasmin Masithela will step in as the Interim CEO of Absa’s Corporate and Investment Bank, taking over from Russon. Both appointments come at a critical time for Absa, with Russon set to lead the group until Rautenbach's planned early retirement on April 15, 2025. Rautenbach will step down as CEO and Executive Director on October 15, 2024, and will complete a six-month notice period during which he will be on gardening leave before his official retirement.

Russon, who joined Absa Capital in 2006 as CFO, has held various senior roles within the company, including Regional Head of Finance and Chief Executive of Engineering Services. His financial expertise is underpinned by a background as a chartered accountant, with prior experience at KPMG, Merrill Lynch, and Deutsche Bank in Europe.

Rautenbach’s early retirement comes after a challenging first half of 2024, during which Absa’s headline earnings per share fell by 5% to 1,228.4 cents, underperforming compared to industry peers. This marks yet another leadership change in a turbulent period for Absa, which has seen six CEOs since 2019, highlighting ongoing struggles to maintain leadership stability.

After Maria Ramos led the group from 2009 to 2019, René van Wyk served as interim CEO until early 2020. Daniel Mminele then took the helm but left after just 16 months due to strategic differences with the board. Jason Quinn, who filled in as interim CEO, passed the reins to Rautenbach in 2022.

Absa is now on the hunt for its seventh permanent CEO, as the bank navigates underperformance and a lagging share price relative to competitors. The leadership shuffle at Absa mirrors trends across the South African banking sector. FirstRand recently promoted Harry Kellan to FNB CEO, while Mary Vilakazi stepped up from FirstRand COO to CEO. At Nedbank, Jason Quinn, a former Absa executive, succeeded Mike Brown, with Mminele serving as chairman since 2022.