Nedbank announced on Friday that it was seeking a new CEO as Mike Brown, its CEO, is set to retire after 14 years at the helm.
The new leader will be in charge of a bank valued at R103 billion.
This as Alexforbes’ outgoing chairperson and former SA Reserve Bank (SARB) deputy governor Daniel Mminele was in February announced as the next Nedbank chairperson. Mminele will take the role after the annual general meeting on June 2, succeeding Nedbank’s current chairperson, Mpho Makwana.
Brown has 30 years’ experience working at the banking group. He took up the CEO position in 2010 and held the role of chief financial officer previously.
In its voluntary trading statement, the group said it would commence a process to choose a successor to Brown, supported by a global search firm with a strong domestic presence.
It said it had a strong track record of effective leadership succession, and this process would consider both internal and external candidates.
“Mike, who is 57 years of age, continues to enjoy the total confidence of shareholders and the board.
“He will continue in his current CE role until such time as a successor has been chosen and will retire after an appointment has been made and a suitable handover process has been completed,” the group said.
Brown said: “I am fully supportive of this process, and I remain 100% committed to continuing in my current chief executive (CE) role until such time as a suitable successor has been chosen and a handover process has been completed.
“After nearly 14 years in the role, I believe the timing is right to start a process that, when completed, will ensure I seamlessly pass the baton on to the next CE of Nedbank.”
According to Nedbank's 2022 integrated report, Brown received a guaranteed salary of R9.6 million, a cash bonus of R17m (R9m in shares), and a long-term incentive payout of R17m.
The total package amounted to R43.6m for the year. In 2022, Nedbank’s seven top executives were paid a combined R203m.
Brown has a very prominent voice as a business leader in South Africa and has in the past called for urgent and decisive leadership on Transnet’s woes, load shedding and water infrastructure, which are dampening the economy.
Meanwhile, Nedbank hasn't revealed what they are looking for in a candidate.
Global Business Solutions chairperson Jonathan Goldberg said in his view under-represented designation groups should be a focus when companies hired new candidates.
“We have compulsory legislation in this country called the Employment Equity Act. We have to look at the executive and we have to say, well, where are we under-represented for the designated group, and the designated group is mainly black, African, coloured and Indian, which is defined as black.
“We have to work backward. So let’s assume that at the executive we are under-represented of African males and African females, that should be our focus here.
“That’s legislation and that’s what’s expected of us in terms of appointing again. Now, there might not be a candidate available, but then you’ve got to go through the process. Search high and wide, for your under-represented are, and that's hypothetical, for example, African male or female.
“And I think that’s what the South African, that’s what the legislation expects, and I think that’s also what a lot of South Africans expect,” Goldberg said.
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