Standard Bank has increased the retirement age of its executive to 63 years, looking to hold on to its top brass for longer in a fiercely competitive jobs market for skilled executives.
The lender said on Friday that it had taken a decision to increase the normal retirement age for executives from 60 to 63 years.
The change takes effect in January, opening the door for its mainstay group CEO Sim Tshabalala to stay longer at the helm of Africa’s largest bank by assets.
The change in the retirement age applies to executives now, matching the unchanged retirement age for all other employees at 63 years.
“The revised executive retirement age aligns Standard Bank with prevailing practices across the financial services industry, ensuring that the bank remains competitive in the global and local talent market,” the bank said.
“It reflects the evolving nature of executive leadership and the increasing value of experience, continuity, and institutional knowledge in driving long-term growth and innovation. This change also ensures that Standard Bank is not an outlier in what is a highly competitive market for key talent.”
The decision by Standard Bank follows soon after rival Nedbank resolved to increase its normal retirement age from 60 to a “competitive” 63 years from August — joining rivals Absa, which also has a retirement age of 63.
Business Day previously reported that Standard Bank’s retirement age of 60 for executives was said to have disadvantaged it in its bid to retain respected banker Kenny Fihla in its ranks.
Fihla, who in his late-50s, opted to join rivals Absa as CEO.
His abrupt resignation as deputy CEO of Africa’s largest bank by assets came just months after he was given increased clout at the bank, with both the Standard Bank SA CEO and rest of Africa boss roles collapsed into Fihla’s office — a move that gave him a bigger say in strategy formulation and execution.
In her letter to shareholders published in the group’s 2024 annual report, group chair Nonkululeko Nyembezi hailed Tshabalala’s leadership of the lender.
“Management succession is also a multiyear endeavour, and the board is satisfied that it is receiving sufficient attention both at a board and management level, with a particular focus on growing our own timber in-country and at a group level,” she said.
“Sim Tshabalala continues to lead the group with aplomb and was recently recognised as business leader of the year [by the Sunday Times] — a prestigious and befitting accolade that is a testament to Sim’s exemplary leadership and, as Sim emphasises, to the professionalism and commitment of all the group’s people.
SA’s banks are undergoing a transition period, with most lenders led by new leaders. Nedbank CEO Jason Quinn has been in the role for just over a year, while Fihla’s tenure at Absa is two weeks old.
The country’s largest retail bank by customer numbers, Capitec, is about to see a leadership change, following the retirement of highly successful Gerrie Fourie, who will hand over the reins of the company to Graham Lee.
Fourie, who has been with Capitec for nearly 30 years, presided over a surge in the share price and profitability, adding nearly 20-million new customers during his tenure.
Fourie will retire in July after being part of the executive management team for the past 25 years.
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