The Public Investment Corporation (PIC) said on Friday it was disappointed with the appointment of Absa Group CEO Arrie Rautenbach, explaining this was a missed opportunity for the board to show its commitment to transformation.

As a shareholder, the PIC has requested that the Absa board present its transformation strategy and plan at an urgent meeting.

The PIC says transformation should be a core strategy of the bank, driven from the board level.

Last year former CEO Daniel Mminele quit over differences with the board in views and approaches in implementing strategies.

The PIC noted its past disappointment with an “apparent instability” at the executive level following Mminele’s departure. 

The PIC wants Absa to incorporate a clear commitment, with clear targets for all levels of management.

“Initiatives to advance transformation in large corporations should expressly be linked to incentive structures of the organisation, with a significant weight accorded to the executive and senior management, to ensure that the requisite commitment and accountability take full effect in practice,” the PIC said.

It added that the appointment of a new CEO should be a “key business risk for the board”, considering the nature and breadth of services Absa provides to South African society.

“The PIC believes this is yet another missed opportunity for the Absa board to publicly demonstrate its commitment to purposefully transform the banking group and to advance diversity, inclusivity, and racial and gender equity, at the most senior levels of organisation,” the PIC’s statement said.