In the fast-paced world of financial news, it’s easy to fall behind the curve. Yet Standard Bank’s strategic dilemma in promoting Kenny Fihla to deputy CEO and head of its SA business refuses to fade: the bank’s mandatory retirement age is 60. At 57, Fihla is on the brink of leadership, but the clock is ticking.
Raising the retirement age is a logical next step. Fihla’s 18-year tenure at Standard Bank has equipped him with the experience and strategic insight necessary to navigate the bank through its next phase.
Taking it for granted that Fihla will replace Sim Tshabalala as CEO soon, the Vrede, Sterkspruit and Soweto-raised business leader will build on the bank’s relatively new growth blueprint that rolls the dice on Standard’s digital future. Under the plan, the bank is shifting its model from providing basic financial services and products to a digital platform that complements its own.
The idea behind the strategy is that Standard Bank is turning its banking app, already widely used by millions of its customers for services traditionally offered in bricks-and-mortar branches, into a digital marketplace that links trillions of rand in deposits to payments and other forms of nonbank services and products.
Imagine Standard’s app as a small shopping complex for a few essential items. Now the bank’s new strategy is a bit like expanding this mall into a huge, vibrant marketplace where one can find a wide array of other services and shops.
However, with only three years until retirement, the bank risks losing a seasoned leader just as he is set to assume the top role. Extending the retirement age immediately solves this problem. It would ensure that the bank’s strategic vision is carried forward without disruption.
Granted, raising the retirement age could lead to stagnation and limit opportunities for younger employees. In a country where youth unemployment is among the highest in the world, this argument has merit and deserves thought reflection. Even so, a flexible retirement policy that considers individual performance and organisation needs can mitigate these concerns.
It’s worth noting that 60 is not considered old in today’s corporate world. Take Jamie Dimon, CEO of JPMorgan Chase, who continues to lead one of the world’s largest banks well into his sixties. His leadership has been instrumental in steering the bank through financial crisis and into sustained profitability. Similarly, Sean Summers, who returned to Pick n Pay as CEO at the age of 70, is a striking example of how seasoned leaders can bring invaluable experience and stability to an organisation.
For Standard Bank, the decision to raise the retirement age would be a strategic one. To ensure its future and maintain its competitive edge, the bank must ensure that its next CEO has the time and enough runway to drive success.
While this perspective may trail behind the latest headlines, the underlying issue remains as relevant as ever. Standard Bank’s decision on this matter could be the difference between keeping investors on its side or losing their confidence.
• Motsoeneng is Business Day deputy editor
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.