Share

Investors punish ABSA parent Barclays Africa over Hodnett's exit

ABSA Bank’s parent company, Barclays Africa Group, announced the resignation of deputy chief executive and director David Hodnett with immediate effect on Tuesday.

The market did not react favourably to the news of Hodnett’s departure. Barclays Africa's share price slipped 2.69% to R176.13 at 14:40 on the JSE. The shares hit an intra-day low of R174.01.

In a note to shareholders, the bank said Hodnett would participate in a handover until August 31, and thanked him for his “extensive contribution”.

The 48-year-old Hodnett, a chartered accountant who completed his articles with KPMG, received R26.5m in salary and bonuses last year, according to the group's annual report.

He has been with ABSA for a decade in the positions of chief risk officer, financial director and, since August 2016, as head of the South Africa Banking portfolio.

Fin24's sister publication, Business Insider, reports his resignation could be over a disagreement on strategic direction.

Barclays Africa Group [JSE:BGA], in April announced a new structure, with four core businesses, as part of the bank's long-term vision to chart its own path after separating from its United Kingdom parent company.

The initial announcement stated that Hodnett would take a two-month sabbatical, and the CEOs of the four operations would report directly to group CEO Maria Ramos. This would essentially have meant that Hodnett’s role as head of SA banking would fall away.

No further details were provided on his post-sabbatical future at the time.

Barclays Africa announced in March it would change its name back to ABSA Group as part of its separation from the UK parent company.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders