BL Premium reports that Absa’s first black CEO Daniel Mminele, who stepped down in April 2021 over differences with the board, was paid R30.47m in a “no-fault” termination agreement with the bank.
Mminele’s sudden exit, which came less than 16 months into his role as CEO, was due to unresolved differences between him and the Absa board over the bank’s strategic direction. Former Absa chair Wendy Lucas-Bull recently said that one of the main sticking points was that Mminele favoured a more centralised oversight strategy whereas the bank had already embarked on a decentralisation approach. Absa indicated in its 2021 integrated report published on 7 April: “For a speedy resolution and in the best interests of the organisation, the board agreed that Daniel would receive a termination payment that would include good leaver treatment on unvested short-term incentive deferrals and unvested long-term incentives, in respect of which Daniel received cash-equivalent payments.” The lump-sum settlement that Mminele received comprised several negotiated elements, of which R16.5m was a so-called ex-gratia (“by favour”) payment as well as an additional R4.5m six-month notice payment in lieu of termination of his contract. It also included R5m in lieu of Mminele’s 2020 short-term incentives, which had been deferred into Absa group shares. The bank’s former CEO received R3.25m in lieu of his 2021 long-term incentive award, the face value of which was R15m, as well as R750,000 for accumulated leave. These payments were made after deducting tax and other statutory contributions. Absa also agreed to contribute to Mminele’s legal costs and an amount of R466,000 was paid directly to him. The exit settlement paid to Mminele, which was on top of his fixed salary payments of R3m for the time worked that year, took his total remuneration in 2021 to R33.47m.
- Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
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