As you would have expected, the resignation of Daniel Mminele, as ABSA Africa’s first black CEO, has triggered an uproar, with black business associations accusing the organisation of deliberately engineering a purge of the cream of black talent.
However, as the dust settles, it is paramount to examine the position a newly appointed black CEO finds themselves. And after that, it would be easy to comprehend the high turnover trend of black talent at the top of the corporate ladder.
First it has to be acknowledged that constant pressure to perform is the occupational hazard that comes with the position of CEO of any blue-chip company, regardless of one’s race.
CEOs are entrusted by the board, acting on behalf of shareholders, to increase by the value of an organisation’s assets using resources at their disposal. Typically, they are expected to steer an organisation through a rough patch – pull a rabbit out of a hat, and turn garbage into gold like an alchemist, if needs be. And sometimes the endeavour of translating pressure into profit can be unbearable. Bear in mind that these are organisations whose objective is Profit, Profit, Profit.
There is even no honeymoon for a new appointee, not even the ‘first black CEO’. They are expected to hit the ground running on the first day in the plush office.
This explains why there is always high CEO turnover in South Africa amongst JSE-listed companies. A record number of resignations was in 2019, and it must be noted that this was not unique to black CEOs; even white CEOs resigned after for reasons, ranging from clashing with their respective board of directors, personal grounds, and the lure of greener pastures
For black CEOs, punted in business circles as pioneers for their kind in the upper echelons of the corporate ladder, the pressure is twice as intense. They have to prove that their presence is well-deserved, earned through merit.
And so, it is not surprising that they are weighed downed by huge expectations to prove a point that they are not token “BEE” appointments ; that they can do the work as capably as others and even better. And the obsession to exceed expectations and debunk stereotypes, in addition to fulfiling their performance objectives, can get the better of them sometimes.
Echoing this point, CEO of Black Business Council in the Built Environment (BBCBE) CEO, Gregory Mofokeng, acknowledged that, for black CEOs, the pressure of being in a space where their rare presence sticks out like a sore thumb can take its toll even on the most resilient of characters. He said that black CEOs need support from black business organisations to succeed on the lonely journey. In an article published by Sunday Times Live, he lamented lack of support offered to Mminele. “We did not do enough. We have not walked this path with him to make sure that we support him,amid the challenges he had. I think that is one of the issues we really need to work on and it is something we have to make sure that we provide, not only to the incoming CEO but even others in this sector because it is a lonely journey. And they need all the support they can get, even from the black business fraternity in particular, so that they can be able to succeed.”
From the foregoing, there is no question that corporate South Africa must create an enabling environment for ‘first black CEOs’ to succeed – a successful black CEOs will add more value to the bottom-line, which is increasing asset value. Isn’t that what shareholders want?
Of course, black CEOs should not expect standards to be conveniently reduced, and at the same time advocate for fairness. That could be tantamount to eating a cake and expecting to have it. Isn’t transformation aimed at facilitating equitable access to opportunity and levelling the playing field?
The reality is that, for black CEOs, the twin pressure of meeting the board’s mandate as CEO and countering the stereotype that they are only token appointments will always be par for the course. And they have to develop thick-skin to outlast the cold and lonely spells at the top.
