Absa Group, a South African financial services conglomerate, paid its first Black CEO Daniel Mminele a total of R30.47 million ($2.1 million) as a termination payment following his decision to step down as CEO of the group on April 30, 2021.
According to the financial report, more than half of the R30.47 million ($2.1 million) that he received from the leading financial services group was an R16.5-million ($1.12 million) favor payment following the termination of his contract with the group.
He also received contractual payments including, R4.5 million ($306,740) in lieu of six months’ contractual notice, and payment of R750,000 ($51,130) in lieu of accumulated leave.
The South African executive, who became CEO of Absa Group in January 2020, spent a significant portion of his career at the South African Reserve Bank (SARB), where he rose through the ranks to become a deputy governor of the Monetary Policy Committee and Financial Stability Committee.
Mminele left the bank after 15 months on the job as the CEO of the leading lender, only three-and-a-half of which were in the most recent fiscal year, due to a misalignment between the board and his strategy and management decisions.
The banking group revealed in its annual report that Mminele’s $2.1-million compensation in 2021 was for a quick resolution that was in the best interests of the organization.
According to the report, the board agreed that Daniel would receive a termination payment that would include good leaver treatment on unvested short-term incentive deferrals, and long-term incentives, in respect of which Daniel received cash-equivalent payments following his termination.
Mminele was paid R13.66 million ($931,270) for his service to the financial services group in 2020, with the majority coming from his total fixed remuneration of R8.66 million ($590,392) received during the period.