Arrie Rautenbach, CEO of ABSA, will be taking early retirement next year after only three years at the helm of one of Africa’s largest banks. Rautenbach’s exit, which is effective from April 2025, comes after media reports last month that ABSA’s leadership wanted him out for a black African CEO.
Rautenbach is said to have “broke down” at a July 25 leadership meeting after some of ABSA’s leadership said they had lost confidence in him for his lack of dedication to effective transformation policies. Consequently, the leadership wanted him replaced by a black CEO. ABSA subsequently denied the reports as a "malicious and sensational distortion".
Rautenbach took over ABSA’s reigns in March 2022 following the April 2021 departure of Daniel Mmilele, the bank’s first black CEO, following reported differences with the board over strategy. Rautenbach’s appointment was immediately criticised by the Public Investment Corporation (PIC) and the Association of Black Securities and Investment Professionals (ABSIP).
“Arrie will cease to be the Chief Executive Officer and an Executive Director of the Boards with effect from 15 October 2024, followed by a 6-month contractual notice period that will be served as garden leave,” the bank told shareholders this morning. The bank also said the departure followed “engagements” with Rautenbach but provided no further details.
Charles Russon will become interim CEO effective 15 October 2024, subject to regulatory approval.