South African lender Absa Group ABGJ.J on Monday said Chief Executive Officer Arrie Rautenbach will take early retirement from the company, effective on April 15, 2025.
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In a move that has surprised many within the financial sector, Absa Group has announced that its Group Chief Executive Officer, Arrie Rautenbach, will be taking early retirement. He steps down in mid-October after just two and a half years in the top job.
Charles Russon will become the group’s interim CEO. He has been with Absa for almost two decades and in the last six years has headed its Corporate and Investment bank.
Absa says the decision follows a series of engagements between the Board and Rautenbach, culminating in an agreement for his early departure, a development communicated to the market this morning through a SENS announcement.
Rautenbach, who has been at the helm of Absa Group since March 2022, will step down from his role as CEO and Executive Director of both Absa Group and Absa Bank on 15 October 2024.
Following his departure from these positions, he will serve out a six-month notice period on garden leave, a standard practice in such high-level transitions.
The Board has expressed its gratitude to Rautenbach for his ‘unwavering commitment’ and the contributions made over his 27-year career with the organization.
Rautenbach was the first internally appointed CEO of Absa Group since its separation from Barclays in 2017. His appointment was seen as a move towards continuity and stability, given his extensive experience within the organization.
Before becoming CEO he served as the Chief Executive of Retail and Business Banking, where he was responsible for the group’s largest business unit. His leadership in this role was characterized by a strong focus on digital transformation, enhancing customer experience, and driving innovation within the bank.
Educationally, Rautenbach holds a Bachelor of Commerce (B.Com) degree from the University of Pretoria and has completed an executive development program at Harvard Business School. His academic background and professional experience have equipped him with the skills and knowledge necessary to navigate the complexities of the banking industry.
Russon’s tenure at Absa dates back to 2006, when he joined Absa Capital as Chief Financial Officer. Over the years, Russon has held several senior roles within the group, including Regional Head of Finance, Chief Operating Officer, and Chief Executive of Engineering Services. His extensive experience within the organization and his deep understanding of the financial sector make him a strong candidate to steer Absa during this transitional period.
Russon completed his articles with KPMG and subsequently worked for Merrill Lynch in London and Deutsche Bank in London and Frankfurt. He holds a Bachelor of Commerce degree from Rhodes University and is a member of The South African Institute of Chartered Accountants.
South Africa’s Absa CEO Arrie Rautenbach to retire next year
JOHANNESBURG, Aug 19 (Reuters) – South African lender Absa Group ABGJ.J on Monday said Chief Executive Officer Arrie Rautenbach will take early retirement from the company, effective on April 15, 2025.
Charles Russon will become interim CEO of Absa Group and Absa Bank effective on Oct. 15, 2024, subject to regulatory approval, the bank said in a statement.
“Charles’ appointment will enable a smooth transition, while the board conducts a diligent search for a new permanent group chief executive,” Absa said.
Absa said the change was taken following “engagements” between the board and Rautenbach, but gave no further details.
Rautenbach will be on a 6-month contractual notice period that will be served as garden leave, the lender said.
Rautenbach has been with the bank since 1997 and took the helm in 2022, becoming the fourth person to take the reins since the departure of longstanding CEO Maria Ramos in 2019.
Russon has been CEO of Absa’s Corporate and Investment Bank since 2018 and a group executive committee member since 2014. Yasmin Masithela will become interim CEO of Absa’s Corporate and Investment Bank effective on Oct. 15.
(Reporting by Nqobile Dludla; Editing by Tom Hogue)
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