WHO DONE IT?

Is there such a thing as shareholder democracy? Can democracy exist where there is no transparency? Whose interests do boards of directors represent? A surprising thing happened recently. Two companies, both stalwarts of the JSE, committed just about the worst sin. Out of the blue, construction company Group Five said on Monday that CEO Themba Mosai had resigned. With immediate effect — despite the three months’ notice that Group Five requires to vacate this position. No reasons were offered for this big development. Last week Absa announced the departure of its CEO, Maria Ramos, at the end of February. That was a calendar month’s notice.

Unlike Group Five, at least Absa had the decency to cook up an explanation for the departure of the longserving Ramos. “She has chosen to retire when she turns 60 in February and is eligible to do so,” it said.

“She had indicated a desire to step down earlier, but agreed to see the group through the separation negotiations with Barclays Plc, the ensuing sell-down and key separation milestones, including Plc achieving regulatory deconsolidation and refreshing Absa’s brand identity. With the separation on track and our new strategy … in place, Maria feels that this is the right time to retire.” Fair enough.

Her departure had been expected for some time. But the spin does not equate to transparency. Surely the retirement age did not just creep up on Ramos and the board? Absa’s own policy is that executives will give a notice period of six months, whether for retirement or resignation. And Ramos was meant to stay until 2020. Since 2017 she has accepted incentive shares of more than R44m to see through the Barclays separation.

What is really going on? Why did these executives suddenly leave?

Let’s start with Group Five. Mosai’s goose was

This was a poisoned chalice, as the asset managers had already lost confidence