Business
Ecobank board asks CEO to step down after months of turmoil
The SEC in January criticized what it said was an absence of clear vision and strategy at the bank, inadequate transparency in recruiting and conflicts of interest. It also demanded that do Rego be reinstated as a whistleblower, something the bank said would be against Togolese law.
Last week, shareholders at an extraordinary general meeting voted to implement reforms designed in part to answer the regulator’s criticism. In an apparent snub to Tanoh, they also told the board to reinstate do Rego. A senior Ecobank official played down the impact of the crisis on the bank. “It’s obviously caused people to be a bit concerned, but if you look at the share price it is slightly down this year, but it is still much higher than at the end of 2012,” the official said.
BOARD ROOM BATTLE
Tanoh’s position as CEO was undermined by a series of defections from the board at a bank that had attracted little adverse publicity under the long tenure of its previous CEO, Arnold Ekpe. “This (Tanoh’s departure) was just a matter of time. I expect a positive response in terms of the market’s view of Ecobank’s corporate governance,” an institutional investor said, declining to be named.
Four executives on Tanoh’s top five-person committee wrote on Feb. 13 to interim Chairman Andre Siaka to say Tanoh should resign to solve a crisis of leadership. That email was sent by Essien, who was executive director of corporate and investment banking in addition to his duties as deputy CEO.
On March 1, non-executive board member Daniel Matjila denounced Tanoh in a letter to Siaka and the board, calling for his contract to be terminated immediately. Matjila represents South Africa’s Public Investment Corporation, the bank’s largest shareholder with 18.35 percent. His letter had the support of two other board members, which had amounted to a total of seven who came out publicly to oppose Tanoh before Tuesday’s meeting.
Copyright Reuters 2014
