Max Oliva has officially taken the reins as CEO of McDonald’s SA. However, Oliva comes with baggage that could distract him from steering the fast-food giant to greater success.
Oliva’s controversial tenure at Spar, marked by alleged governance failures and looming legal battles, raises serious questions about his ability to lead McDonald’s SA effectively. Unfazed, McDonald’s SA has confirmed in a brief email that Oliva has started work, noting his presence at the Sandton head office.
Some in the know suggest Oliva may prefer working remotely from Durban. If true, this sets a worrying precedent. A CEO’s physical absence can erode trust, weaken corporate culture and hinder crucial face-to-face decision-making.
If Oliva is based in Durban, thereby distancing himself from staff at the headquarters, how can he inspire confidence? That said, let’s assume he is based in Sandton and not question the fast-food retailer in that regard.
Oliva’s past at Spar was a minefield of controversy. On his watch, alongside former chair Graham O’Connor, the retailer suffered catastrophic governance failures, most notably the disastrous SAP software rollout and the questionable R500m Encore acquisition, which shareholders allege was a related party deal.
These missteps contributed to Spar’s plummeting share price and eroded investor trust. What should be worrying for Oliva and his new employer is that Spar’s new chair, Mike Bosman, has vowed to hold former executives accountable.
At the March 2025 AGM Bosman admitted that Spar’s initial attempts to reclaim damages through clawback provisions failed, but suggested the retailer would pursue legal action under the Companies Act.
If Bosman proceeds, Oliva is likely to have to allocate time to court appearances and lawyer consultations instead of attending meetings at McDonald’s SA in Sandton. If Spar pursues the legal matters Oliva might be required to travel to Durban and Pietermaritzburg to prepare and defend himself in court against his former employer.
Oliva’s leadership at Spar was further marred by allegations of nepotism and an insular “boys’ club” culture. Important decisions were reportedly influenced by a tight-knit group including Oliva, Tony Mun-Gavin, Blake Raubenheimer and Bruce Hughes, all allegedly connected through Durban High School and long-standing personal ties.
Oliva’s close relationship with the Hughes family (who reportedly funded his education and secured his early career at Spar) raises concerns about conflicts of interest. These allegations could be damaging if they resurface in mooted legal proceedings.
Oliva’s new employer, McDonald’s SA, owned by Emirates-based MSA Holdings, faces fierce competition from KFC, Chicken Licken and Burger King. The company needs a fully focused CEO, not one likely to be embroiled in legal battles and reputational damage control.
Franchisees should be wary. If Oliva is forced to divert attention to defending his Spar-era decisions, who will drive growth, innovation and operational excellence at McDonald’s SA? The risk is that if history repeats itself poor governance and leadership distractions could erode value, just as they did at Spar.
Hiring Oliva was a bold, potentially reckless, move by MSA Holdings. While Oliva may bring experience, unresolved controversies and looming legal threats make him a liability.
McDonald’s SA cannot afford a part-time CEO, especially one whose past may overshadow the company’s future. If Spar succeeds in holding Oliva accountable, McDonald’s SA could find itself as collateral damage in a governance scandal it had no part in.
The question isn’t just whether Oliva is the right leader, but why McDonald’s was prepared to gamble its SA operations on a man still fighting battles from his past war.
• Lourie is founder and editor of TechFinancials.
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