The leadership conundrum facing black CEOs as they transition to top leadership roles.

ANELISA TUSWA investigates the challenges faced by black CEOs as they transition to top leadership roles

In the past few years, the number of black executives hired to lead some of the biggest companies in south africa has increased. according to PwC’s 13th edition of the Executive directors: Practices and Remuneration Trends Report, black, coloured and indian representation at CeO level of the top 100 Jse-listed companies remains very low at 22 per cent. This is a mild improvement from the previous statistics of 14 per cent, although it remains far from representative.

even though the hiring of black CeOs has increased, their stay at the helm of leadership has been short-lived.

One example is Basani maluleke, the first black woman to lead a south african bank. maluleke resigned after three years of being the group CeO of african Bank. it was said that she has moved to greener pastures.

another example is Daniel mminele, the absa group’s first black CeO, who resigned after two years with the company. in a joint statement released by mminele and the bank, mminele states: “it is indeed regrettable that we should have had to part ways so soon on our journey. it is, however, important for the chief executive to be in complete alignment with the board on critical issues such as strategy and culture. i became enamoured of the brave, passionate and ready people of absa and wish the group well for the future.”

Bonang mohale, president of Business Unity south africa (BUsa), says corporate executives leave because they are invited to the party, but not given much room to dance. “Diversity is being invited to the party. inclusion is being asked to dance. Belonging is bringing your own music and being allowed to play that music,” mohale explains.

He says south african boardrooms are not a true representation of the real south african demographics.

“When you get to the south african boardroom, one would think you are in europe, not in africa.”

This, he believes, is one of the reasons many black executives exit corporate south africa quicker than their white counterparts.

DISADVANTAGED FROM THE GET-GO

Business analyst Khaya sithole agrees. He says even the black executives who occupy, or have occupied corporate spaces, are tied up by nondisclosure agreements.

“There’s a huge information asymmetry. Those who have been fortunate enough to enter those positions and exited are not ready to share the information. so those who enter after them enter from a point of blindness.” sithole adds that from the start, many executives entering the corporate leadership space enter from a disadvantaged position, especially those who come in as “outsiders” and then head straight to the CeO position.

“Daniel mminele at absa is the perfect example of this,” says sithole, adding that mminele never got enough support to transition and settle into his role.

“it wasn’t a question of whether he understood the bank or not; it was whether he understood that particular institution. None of the former black executives were able to assist or at least enlighten him to navigate the organisation’s politics, structure and values.”

The Black Business Council (BBC) says many CeOs are appointed as a tick-box exercise.

“You find that this environment is not prepared to accommodate them; it’s very hostile,” says the BBC CeO, Kganki matabane. “many get frustrated and leave.”

matabane says black people need to be afforded the opportunity to own these companies so that the problem is solved at root level.

“Ownership is key, and blacks don’t own much, meaning they don’t have much power,” he explains. matabane and the BBC believe that shareholders play a crucial role in the ongoing crisis around hiring and retaining black executives.

“shareholders give the board a mandate and the board implements it. if the board is not told to hire a black CeO or is told to fire one, that’s what they will do,” he says.

The BBC has met with the Public investment Corporation (PiC) and will continue to lobby through them as well, says matabane, adding that “the PiC is a shareholder in all these big companies. so, we’ve asked them to appoint the right board members. We need board members who are pro-transformation”.

The Black management Forum (BmF) says on the ground, black executives are just tired of fighting for inclusion.

“The problem is structural and black executives are just trying to navigate,” says esethu mancotywa, BmF deputy president.

The BmF says the government has a role to play. “government has immense legislative power. But our government is not using its legislative powers to legislate black people out of poverty,” she adds. “as black business lobby groups, we can try to fight and scream, but legislative is where it’s at,” mancotywa says.

she believes that government might have missed its opportunity to make the necessary changes to many of the economic empowerment legislation.

“There was a time when the aNC had two-thirds majority in Parliament and could have passed transformative policies that would fundamentally shift the way corporates behave, but they missed that opportunity,” she says.