Cape Town – Former Finance Minister Trevor Manuel has replaced Old Mutual CEO Bruce Hemphill as chairperson of Old Mutual Emerging Markets (OMEM) as part of the wider group’s separation process.
Old Mutual announced the move on Thursday, saying it is an important step in the business readiness process for OMEM under Old Mutual’s managed separation strategy. Hemphill will remain on the OMEM board, it said in a statement.
Manuel, who has been on the board of OMEM since 2015, will oversee the establishment of the appropriate board and governance structures for an independently-listed OMEM and in line with the King IV Report on Corporate Governance which will come into effect on 1 April 2017.
Old Mutual Group is embarking on a managed separation, which will entail separating its four businesses into standalone entities: OMEM, Nedbank, Old Mutual Wealth and OM Asset Management. The separation is set to be complete by the end of 2018.
“It is a pleasure to announce Trevor as chairman of OMEM as his credential reflect his extensive experience and leadership across business and the public sector,” said Hemphill.
“In particular he embodies the values of Old Mutual and King IV in aligning good corporate governance with good corporate citizenship."
Manuel said this is an important and exciting time to become chairperson of OMEM.
“The company has made a significant contribution to South Africa over many years and it will remain a priority that Old Mutual contributes to the prosperity of all South African citizens.”
Meanwhile, Old Mutual on Thursday posted a 1% rise in operating profit to £1.7bn in its preliminary results for the 2016 financial year.
It furthermore declared a second interim dividend for the year ended 31 December 2016 of 3.39p (54c) per share.
"The second interim dividend, together with the first interim dividend of 2.67p (43c) per share paid in October 2016, equates to approximately 3.2 times the Company’s adjusted operating profit earnings cover for the full year," it said in a statement.