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Old Mutual suspends CEO, citing ‘material breakdown in trust’

COO Iain Williamson appointed as acting CEO.

Old Mutual suspended Chief Executive Peter Moyo on Friday, citing a “material breakdown in trust” with its board just hours before the annual shareholder meeting of South Africa‘s No.2 insurer, knocking its shares.

Moyo, who took the helm at newly-listed Old Mutual less than a year ago, would be replaced by Chief Operating Officer Iain Williamson as acting CEO immediately, the insurer said.

“The board has had various engagements with Mr Peter Moyo … These engagements have caused the board to conclude that there has been a material breakdown in trust and confidence between him and the board,” Old Mutual said in a statement.

Read: Old Mutual CEO denies wrongdoing after suspension

Moyo, who has held senior executive or board positions in a variety of firms and served as a deputy managing director in a previous stint at Cape Town-based Old Mutual, did not immediately respond to requests for comment via LinkedIn and e-mail.

He rejoined Old Mutual in 2017, initially as head of the emerging markets division, before the former conglomerate’s main African financial services business was split off in a disentanglement of the 173-year-old group’s structure.

Chairman Trevor Manuel, a businessman and former South African finance minister, would provide more information at the Old Mutual’s Annual General Meeting, a spokeswoman said.

Both Old Mutual’s Johannesburg and London-listed shares dropped 5% on news of Moyo’s suspension, but recovered to R21.53 per share by 07:25 GMT in Johannesburg, a 0.78% decline.

Since its listing as a separate business in June 2018, Old Mutual has been working to hone its strategy as a stand-alone business and parent company to what remains of Old Mutual. 

Old Mutual announced a R2 billion ($139 million) share buyback in March in a bid to placate shareholders following an almost one-third drop in the share price since the listing.

Traders and investors were left guessing by the move. 

“Given the very little information in the announcement, it leaves room for speculation,” Jan Meintjes, portfolio manager at Old Mutual investor Denker Capital, said. 

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Is this the same guy that got Tiger into a little trouble in Afrika, then moved on to Alexander Forbes????

There must be many Tiger Brands shareholders baying for his blood.

He lacks business acumen and wisdom

A quick google search would have told you that Tiger Brands was Peter Matlare. Just like Stephen Saad is not the same guy who was Springbok Captain. Another quick google search would have told you that this guy knows his stuff, like it or not. History kinda repeating itself though. His departure from Alexander Forbes was also rather sudden.

Perhaps now Old Mutual’s manic enthusiasm for prescribed assets and construction shares will stop.

This is the man who had the need to send a memo to staff eulogizing the late and great former mother of the nation.

Strategy and execution was a side show!

Oh yes the box of matches and a tyre lady. Set the scene for service delivery demos.

“Material breakdown in trust” is just fancy words for “caught red handed with his fingers in the till”. I am sure the details will follow shortly.

You will never see any detail – will be quietly swept under the rug never to be heard of again.

Anybody who has works for any SA state enterprise is spoiled for life and cannot cut it in private sector where you have to actually work and produce results.

Anyone who has had the pleasure of working with Peter will know that he is incredibly competent and qualified to lead any organisation. The ignorant comments here show the trend of playing the man and not the ball is still the order of the day in mzansi…this is certainly Old Mutual’s loss!

But was he worth his salary? And what is the reason for suspension?

Old Mutual CEO Peter Moyo earned R35.5m in 2018 | Fin24

For 20 years people said exactly the same about Markus Jooste and the share price seemed to support it. And then one morning in December 2017, all hell broke loose. Let’s wait and see what the facts show.

The good thing about this one is that we will find out exactly what it’s all about, given the apparent conflict of interest and the requirement under IFRS accounting rules to report on related party transactions.

Don’t forget your reporting requirements OM. We’ll be watching.

So Moyo leaves today due to TRUST concerns and months of talking – surely then he should repay all that he earned during the mis-trust period – I presume its all because of his plethora of outside business interests and a proper conflict of interest !!
PAY BACK THE MONEY MOYO

There is a technical difference between suspension and actually being dismissed – Moyo seems to have copped the former, so, some sort of further investigation would appear to be on the cards.
So let’s wait and see what comes out of the woodwork before we jump to conclusions that he is no more.
Personally I think he has been over promoted and over paid

Professional board members that serve on numerous boards at the same time have no loyalty or can surely not be loyal to all when there is conflict of interest. It is often easier to move large “performance” gratuities into your own pocket form a board where you can dominate your peers.

This professional board member profession serves no company just the members.

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