Absa’s appointment of former Standard Bank deputy CEO Kenny Fihla as its new CEO on Monday, after he resigned suddenly from his former employer on Sunday night, would address a leadership vacuum at Absa and possibly improve market sentiment in Absa.
Absa announced Fihla's appointment as CEO was effective from June 17, 2025, while its current interim CEO Charles Russon will stay on in that role until Fihla takes over and will work closely with the new CEO to ensure a smooth transition, after which Russon would take a key senior role within the group executive committee.
“Standard Bank Group announces that after 18 years of service to the group, Kenny Fihla, the group’s deputy chief executive and chief executive of SBSA, has tendered his resignation, with his last day in office being Friday, 13 June 2025,” a statement from Standard Bank, released on Monday morning, said.
Although it is not known what Fihla will earn in his new job, Absa's former CEO Arrie Rautenbach earned R37.55 million in 2023, according to the bank’s 2023 remuneration report, while Fihla earned R69.9m, according to Standard Bank’s 2023 remuneration report.
According to the American Banker online publication, the average US bank CEO remuneration in 2023 was more than $21 million (R380.6m).
Nitrogen Fund Managers chief investment officer, Rowan Williams, said Fihla would address a long-standing leadership vacuum at Absa and he also has the required skills and experience to improve Absa’s performance and to do the “great deal of work required to improve market sentiment around Absa”.
He said the resignation and appointment was less of a loss for Standard than it was a gain for Absa because Standard had broader and deeper pools of talent that could fill Fihla’s position.
“Kenny is a recognised leader with substantial pan-African banking experience and a proven track record. He has almost 20 years of experience in leadership roles in banking,” Absa said.
“He joined Standard Bank Group in 2006 and had held numerous senior roles including CEO of CIB, Deputy CEO of Standard Bank Group and CEO of Standard Bank South Africa.”
Absa's share price rose 2.7% to R189.19 in early trade on the JSE on Monday, while Standard Bank's was little changed at R237.99. Absa has been looking for a permanent CEO since Arrie Rautenbach took early retirement in October 2024, amid internal disagreements about the slow pace of transformation.
Standard Bank said separately Fihla would take gardening leave as of Monday. Fihla, who holds a master's in financial economics from the University of London and an MBA from the University of the Witwatersrand, had been tipped as a future successor of Standard Bank's current CEO Sim Tshabalala.
“Whilst this is a heavy blow for us, the group is blessed with a surfeit of talent and deep succession pools,” Standard Bank’s statement said. “Further announcements in respect of the leadership of our geographies will be made in due course.”
Fihla became deputy CEO in August last year, after being CEO of the CIB unit. Luvuyo Masinda became CEO of CIB.
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