Absa paid Daniel Mminele more than R30m as a termination package

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Absa paid its former CEO Daniel Mminele R30.47 million in total to part ways with him.
Absa paid its former CEO Daniel Mminele R30.47 million in total to part ways with him.
Photo: Elvira Wood
  • Absa gave its former CEO Daniel Mminele a R30.7m "termination payment" package.
  • The amount includes incentives, leave pay, a notice period payment, as well as damages.
  • Absa's interim CEO, who was appointed after Mminele resigned, was paid R35.5 million for his services.

Absa paid its former CEO Daniel Mminele R30.47 million in total as part of a termination agreement, which included almost R500 000 for his legal fees. 

According to the banking group's 2021 remuneration report, there was a "mutual separation agreement" between the board and Mminele to terminate his employment on a "no-fault" basis.

A year ago, Mminele quit as Absa CEO following clashes with the board on how to implement the bank’s strategy. At the time, Absa chair Wendy Lucas-Bull said Absa's leadership team also didn't see eye-to-eye with Mminele on how to do things. Arrie Rautenbach has since taken over as new CEO.

According to the new report, Mminele and the board agreed on a "termination payment". The bank would give Mminele both unvested short-term and unvested long-term incentives in cash payments, without tying these to any measured targets.

So the bank paid him a lump sum of R5 million in lieu of his 2020 short–term incentive and another R3.25 million for 2021 long–term incentives. It also gave the former CEO an ex gratia or damages payment of R16.5 million.

Absa moreover paid Mminele R4.5 million for the six-month notice period he was supposed to have served - but didn't. In addition, he was also paid R750 000 for accumulated leave he had not taken. Furthermore, Absa contributed R466 000 to his legal costs.

"The total value of the separation payment was R30.47 million," Absa says.

Absa paid R94.85 million to all its group executives in 2021. 

Jason Quinn, who took the position of interim CEO when Mminele left until Rautenbach's appointment at the end of March, earned just over R35.5 million. Of that amount, R6 million was his fixed remuneration, and the rest was made up of short- and long-term incentives.

Punki Modise, who served as the group's interim financial director in 2021, earned R23.2 million. 

Absa's remuneration committee said the bank delivered a solid performance in 2021 despite an increasingly competitive environment. It wanted to ensure that its remuneration framework remains "fit-for-purpose" and is competitive enough to attract and retain key talent.

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