Old Mutual: Defining Moments for Board Leadership

When Peter Moyo was appointed as chief executive officer (CEO) of Old Mutual Emerging Markets (Old Mutual), one of South Africa’s largest and oldest financial institutions, in 2017, the chair of Old Mutual, Trevor Manuel, and the Old Mutual board were optimistic, as Moyo seemed like the ideal candidate. However, less than two years into his tenure, Moyo’s employment was terminated owing to a conflict of interest and a breakdown of trust between Moyo and the chair and board. From the moment he was suspended, Moyo made the dispute very public, and appeared to be orchestrating a media campaign against Old Mutual and the directors, especially Manuel. A protracted and bruising legal battle ensued, and many corporate governance lessons were learned. It was now incumbent on the board to identify and appoint a new CEO of Old Mutual. Given the local and international environment, and in view of internal and external challenges, they needed to consider what kind of CEO would be appropriate for Old Mutual; what criteria they should set for this crucial position; and what the right timing and communication process would be around the new CEO’s appointment.

This case can be used in undergraduate-, graduate-, and post-graduate-level courses; management development programs; or short executive education courses focusing on accountability, business ethics, corporate governance, crisis management, or turnarounds in a corporate strategy. It allows students to consider how effective boards are run, including through such aspects as recruitment, board teamwork, and the relationship between the CEO and the chair. After working through the case and discussion questions, students will be able to do the following:<ul><li>Analyze the case in order to identify drivers of effective board functioning, top management team focus, turnaround execution, and stakeholder communication.</li><li>Evaluate how crisis management strategies and concepts are influenced by traditional and new types of media.</li><li>Gain insight into grey-area decisions among top management team members, especially in the context of an internally derived organizational crisis.</li></ul>

• Corporate governance
• Ethical leadership
• Gray area decisions
• Conflict of interest
• Breakdown of trust
• Board accountability to shareholders
• Board succession planning