Old Mutual’s share price fell by 2.6% after the announcement of the suspension of its executive officer Peter Moyo, after an alleged “breakdown in trust” between him and the board.
Moyo is the chief executive of Old Mutual Limited and Old Mutual Life Assurance Company Limited.
In a stock exchange news service announcement on Friday, Old Mutual said the board had various engagements with Moyo which led to the decision of his suspension.
“There has been a material breakdown in trust and confidence between him and the Board”, the SENS brief reads.
An independent analyst Theo Botha says the market moved a bit, but not much will happen until there is more information about his suspension.
The announcement threw the markets off guard, nobody would have expected this.”
“There is nothing much to say because the market is waiting for a detailed response of what happened. Today its their annual general meeting, maybe more will be said then,” said Botha.
Iain Williamson, chief operating officer will assume the role of acting chief.
Moyo rejoined the company in June 2017, initially in the emerging markets division, and later Old Mutual Limited, having left in 2005 to join Alexander Forbes.
Moyo has also served in various directorships both in the public and private sector. Before he joined the Old Mutual, he was he was a partner at Ernst & Young, and served on the national Executive.
Fin24 reported in March 2019 that Moyo earned R35.5-million in 2018. This was the period which saw Old Mutual list its African and emerging markets arm on the Johannesburg Stock Exchange.
The report said the company rewarded him for his ability “to deliver the successful listing of Old Mutual”.