Three executives resign at Old Mutual

Group CEO Iain Williamson announces the exits in communication to staff.
The insurer has proposed the appointment of Clarence Nethengwe as CEO-designate of Old Mutual Bank. Image: Waldo Swiegers/Bloomberg

Old Mutual – South Africa’s second-biggest insurer – has seen three high-profile staff members tender their resignations

In a letter to staff issued on Thursday 12 September, group CEO Iain Williamson announced the resignation of Khaya Gobodo as managing director of Old Mutual Investments.

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According to Williamson’s note, Gobodo will “pursue interests outside the group” and his “gardening leave” was effective from Monday 9 September.

Gobodo joined the Old Mutual Investment Group in January 2018. He previously worked at Investec Asset Management as a portfolio manager and then as strategic head.

Old Mutual Bank-Build executives resign

In a circular on Friday 13 September, Williamson also notified staff of the resignations of Old Mutual’s “Bank-Build” CEO Rolf Eichweber, as well as the “Bank-Build” COO Royden Volans.

The two executives tendered their resignations effective 31 July; however, they will serve until end-October under their contractual obligations.

“While transitions like these can bring challenges, they also present valuable opportunities,” Williamson notes.

In April this year, Old Mutual secured a banking licence from the South African Reserve Bank’s Prudential Authority.

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The Old Mutual Bank has its sights on the mass market, which consists of individuals who typically earn between R1 000 and R30 000 per month, and will compete with established players in this segment, such as Capitec.

Williamson said earlier Old Mutual had allocated R1.75 billion to build its core banking system with a further R800 million allocation to continue building the banking system. The planned launch for the new bank is before the end of 2024.

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In his letter to staff, Williamson said the insurer has proposed the appointment of Clarence Nethengwe as CEO-designate of Old Mutual Bank, effective 1 November 2024. His appointment is subject to regulatory approval.

“Clarence, a long-standing executive of Old Mutual, is suitably qualified to lead the bank as it prepares to go live,” he said.

According to Williamson, Nethengwe, who is currently managing director of Old Mutual’s Mass & Foundation Cluster Franchise, was instrumental in developing the initial business case and appointing the first key executives of the bank.

In a statement released late Friday afternoon, Old Mutual confirmed the proposed appointment of Nethengwe, as well as the resignations of Eichweber and Volans.

“The transition from a ‘bank-build’ phase to a ‘bank run’ phase marks an exciting new chapter in our journey. While we greatly value the immense contributions of Rolf and Royden, we are confident that we have the right skills and leadership in place to take the bank forward and ensure its success,” Williamson said in the issued statement.

The group adds that a key focus over the next period is ensuring the OM Bank executive committee has a complement of core skills. “As its next growth phase takes off, the bank will ramp up more hires.”

Old Mutual’s share price

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Oh my.
I dare say — Perhaps they were a bit miffed by a certain BEE appointment ne!!!!!!!!!!

Old Mutual is a race-obsessed laughing stock. Gobodo did NOTHING at OMIG. NOTHING.

End of comments.

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