Absa shareholders are clearly disgruntled with executive remuneration at the banking firm. Yesterday Absa said it would hold a meeting for shareholders to voice their concerns about the lenders’ remuneration implementation report, after more than 25 percent of shareholders voted against the remuneration implementation resolution at the annual general meeting on Friday. Absa has been in the public spotlight with corporate governance issues and executive problems recently.
In April it disclosed in its annual report that Daniel Mminele, Absa’s former chief executive who stepped down in April 2021, was paid R30.47 million in a termination agreement with the bank.
Mminele, the lender’s first black CEO, exited citing differences of opinion on strategy with the board, in particular its chairperson Wendy Lucas-Bull, after little more than a year in the position.
Lucas-Bull, who stepped down in March after a nine-year stint, said in her last comments in the bank’s 2021 annual report: “The decision by Absa and former group chief executive, Daniel Mminele, to part ways in April 2021 was regrettable, resulting in a mutually agreed separation that was in the best interest of both parties.”
The bank said for a speedy resolution, the board agreed that Mminele 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 Mminele received cash-equivalent payments.
The bank reported that it had paid Mminele a lump sum that included numerous negotiating factors. The R16.5m was an ex-gratia “by favour” payment, and an extra R4.5m six months’ notice payment on behalf of the termination of his contract. Mminele’s payment also included R5m in place of his 2020 short-term incentives, which had been put back in Absa group shares.
Source: SABC
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