As the impasse between Old Mutual and axed CEO Peter Moyo intensifies in court over whether he can get his job back, the insurer’s largest institutional shareholders have asked it to get its house in order.
To recap: Moyo was suspended on 23 May 2019, hours before the Old Mutual annual general meeting, due to “a material breakdown in the relationship of trust and confidence”. Old Mutual fired Moyo on 18 June, accusing him of wrongfully pocketing dividends worth R30-million linked to NMT Capital, an investment holding company co-founded by Moyo, and in which Old Mutual holds a 20% stake.
If Old Mutual accedes to the pension funds’ demand, it would be a rare move because as there are no rules in South Africa that give shareholders the right to reject a golden handshake offered by a board to an axed CEO.We don’t want shareholder funds to be used for a golden handshake because the company knew about this conflict of interest relating to Moyo’s NMT Capital and thought it could manage it well. But it didn’t,” said Mncube.
Shareholders were vexed that Moyo received total compensation of R50.5-million in 2018, which comprises a R15.4-million reward he received after the company completed its managed separation in June 2018.
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