Old Mutual, South Africa's second-largest insurer, has seen three senior staff members leave
In a letter to staff published on Thursday 12 September, group chief executive Ian Williamson announced the resignation of Haya Gobodo as managing director of Old Mutual Investments.
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According to Williamson's memo, Gobodo will be “pursuing interests outside the group” and his “gardening leave” is effective from Monday, September 9.
Gobodo joined Old Mutual Investment Group in January 2018. He previously worked at Investec Asset Management as a portfolio manager and then as head of strategy.
Mutual Bank-Build's Veteran Executives Resign
In a circular dated Friday, September 13, Williamson also notified staff of the resignation of Old Mutual's Bank-Build CEO Rolf Eichweber and Bank-Build's chief operating officer Royden Volans.
Both executives submitted their resignations effective July 31; however, in accordance with their contractual obligations, they will continue in their positions until the end of October.
“While such transitions can present challenges, they also present valuable opportunities,” Williamson notes.
In April this year, Old Mutual received a banking licence from the Prudential Regulation Authority of the Reserve Bank of South Africa.
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Old Mutual Bank is targeting the mass market 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 had previously said Old Mutual had committed R1.75 billion to build its core banking system, with an additional R800 million to continue building the banking system. The new bank is expected to be operational by the end of 2024.
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In his letter to employees, Williamson said the insurer had proposed appointing Clarence Netengwe as CEO of Old Mutual Bank, effective November 1, 2024. His appointment is subject to regulatory approval.
“Clarence, a long-time leader of Old Mutual, has the necessary qualifications to lead the bank as it prepares for launch,” he said.
Netengwe, who is currently managing director of Old Mutual's Mass & Foundation Cluster Franchise, was instrumental in developing the initial business case and appointing the bank's first key executives, Williamson said.
In a statement released on Friday evening, Old Mutual confirmed Netengwe's intended appointment, as well as the resignations of Eichweber and Volans.
“The move from the 'bank building' phase to the 'bank taking' phase marks an exciting new chapter in our journey. While we greatly appreciate the enormous contributions of Rolf and Royden, we are confident that we have the necessary skills and leadership to take the bank forward and ensure its success,” Williamson said in a statement.
The group adds that a key focus during the next period will be to equip OM Bank’s executive committee with additional core skills. “As the next phase of growth begins, the bank will recruit more people.”
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