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Ecobank poaches Chief Executive Officer of the Citigroup, Ayeyemi, as GCEO
– Plans interim management to bridge the succession date
Julius Alagbe |
Ecobank Transnational Incorporation, ETI, has poached Ade Ayeyemi, Chief Executive Officer (CEO) of the Citigroup incorporation as Albert Essien, its Group Chief Executive Officer tenure expires on June 30. Essien was named Ecobank CEO in March 2014 after the company ousted former Chief Thierry Tanoh.
According to Ecobank in a statement made available to the stock exchange, ETI is due to hold its annual general meeting (AGM) on June 19 in Dar es Salaam, Tanzania. This will be the last AGM where the current bank chief will feature.
The appointment of Ayeyemi has been viewed by analysts as right step in right direction for the leadership of the Pan-African lender; given the fact that a Nigerian is appointed to the highly coveted position of the Chief Executive.
“Given his antecedent at Citigroup, Ecobank may be on the path to raising its corporate governance standard again”; Jide Famodun, Consultant with LeverageSolutions said in an email.
It may be recalled that Ecobank had been plagued by weak corporate governance and bad behaviour in recent times. Changes on the board and management of the bank had been targeted at cleaning up both its books and public image which had been badly smeared.
Though, Ayeyemi is expected to assume the position by September 1st, 2015, the exit of Essien will create vacuum at the chief executive office from July 1st. As a result, Ecobank plans to set up an interim management team to fill the gap between his exit and eventual ascension of the new appointee.
Ayeyemi, who was head of transaction services in Africa before assuming the regional CEO role at Citigroup, has been with the New York-based lender for more than 25 years.
Moreso, he worked for Citigroup in Nigeria before moving on to other roles on the continent and has most recently been based in Johannesburg.
“After a thorough and extensive search throughout the African continent, we are delighted to have secured Ade as the person to lead Ecobank through the next phase of its development and beyond as a world-class pan-African bank,” Ecobank Chairman Emmanuel Ikazoboh said in an e-mailed statement.
Ecobank operates in more African countries than any other lender and has a presence in more than 30 nations on the continent.The group has gained 50 percent in Lagos trading since Essien was named CEO on March 12 last year.
Essien, who has also worked for Ecobank for longer than 25 years, said in an interview in Cape Town last week that his last public appearance for Ecobank will be at its annual general meeting on June 19 in Dar es Salaam, Tanzania.
“I have a sense of fulfillment, I have paid my dues,” Essien said in the interview. “I will do advice work and be based in Accra. I will work with other institutions and partner with world-class consulting companies. I’m going to join some boards. I’ll be choosy about who I work with, but it will be much more relaxing.”
Tanoh left Ecobank more than a year ago after regulators investigated allegations of fraud and poor governance while he was running the lender. He denied wrongdoing and took the bank to court for wrongful termination and defamation.
Ecobank may seek to reach a settlement agreement with Tanoh this year over damages exceeding $35 million awarded by West African courts against his former employer, Essien said last week.
“Although the court process will go on, we will ultimately settle amicably,” Essien said. “I cannot stop the court process till we have a settlement. Both options will for now be pursued.”
It may be recalled that a commercial court in Ivory Coast last month ordered Ecobank local unit to pay Tanoh 8.2 billion CFA francs ($14 million).
That was on top of $22.5 million Tanoh was awarded in January and February by courts in Ivory Coast and Togo. A London court blocked those two rulings in April, a judgment Tanoh’s lawyer said he would challenge.
Tanoh left Lome, more than a year ago after regulators investigated allegations of fraud and poor governance while he was CEO.
The ousted bank Chief denied any wrongdoing and took the bank to court for wrongful termination and defamation. ETI says Tanoh’s contract was based on British law and that the two West African courts have no jurisdiction.
ETI will sell a stake in Ecobank Nigeria Ltd. by the end of 2015 to boost the unit’s capital, Essien said.
Ecobank Nigeria is ETI’s biggest subsidiary with $9.4 billion of assets. ETI, whose largest shareholders are Johannesburg-based Nedbank Group Ltd. and Qatar National Bank SAQ, owns all of Ecobank Nigeria.
South Africa’s Nedbank Group Ltd. became ETI’s largest shareholder in October, 2013 when it bought a 20 percent stake for $493 million. Qatar National Bank (QNB) the second-biggest owner holds 17 percent. At current statistics West Africans, the initial promoters of the bank have lost out.
Meanwhile, Essien is quote to have said that “It will be up to Ecobank shareholders if they want to buy equity in the Nigerian business”.
