Corporate South Africa has recently been infected by a state-owned enterprise disease. The symptoms of the disease? A high turnover of CEOs in a short space of time. More than 10 CEOs have either resigned or were pushed out of JSE-listed companies and business lobby groups since January 2019. It is only mid-year and market watchers expect the CEO revolving door to continue.
As a stock analyst with more than two decades of experience in the UK and SA, Cratos Capital's Ron Klipin has seen many high-flying companies and their CEOs come and go.
However, the six months since January 2019 is the first time Klipin has seen such a high number of resignations by CEOs of JSE-listed companies, business lobby groups and state-owned entities (SOEs) -- prompting him to call the exodus "unprecedented."
CEOs in South Africa are falling like flies. Business Maverick's calculations show that 11 CEOs of JSE-listed companies and business lobby groups have resigned since January 2019. This count swells to 15 after including SOEs, which have always faced a leadership stability crisis.
Consider Eskom and South African Airways (SAA), two SOEs that have guzzled billions of rands in taxpayer funds for their survival. Over the...