FirstRand - Announcement regarding FirstRand senior management restructuring
FirstRand Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1966/010753/06)
ISIN: ZAE000066304
Share Code (JSE): FSR
Share Code (NSX): FST
(`FirstRand`)
Announcement regarding FirstRand senior management restructuring
Laurie Dippenaar will step down as FirstRand Group CEO and move to a non-
executive role. Paul Harris, currently FirstRand Bank CEO, will become Group
CEO and Sizwe Nxasana, previously the CEO of Telkom SA, will join the Group as
CEO of FirstRand Bank.
Laurie Dippenaar`s resignation and Paul Harris` appointment as FirstRand Limited
CEO will be effective from 1 January 2006. Sizwe Nxasana`s appointment as CEO of
FirstRand Bank will be effect on the same date. Laurie Dippenaar will remain
non-executive chairman of Momentum, Discovery and OUTsurance and serve as a non-
executive director on the boards of FirstRand Bank and FirstRand Limited.
The appointment of Sizwe Nxasana as CEO of FirstRand Bank has been approved by
the South African Reserve Bank.
Comment from GT Ferreira, chairman of FirstRand Limited
`For some time Laurie has indicated that he would like to take on a more
strategic non-executive role and hand over the day to day management of
FirstRand. We are extremely fortunate to have a person of the calibre of Paul
to replace Laurie as they have worked in successful partnership for many years.
I thus anticipate the handover will be very straightforward given Paul`s
previous role as CEO of the bank, which represents 80% of the Group`s business
activities.
`Since the creation of FirstRand in 1998 Laurie has been an incredibly effective
CEO, and the Group`s track record speaks for itself. From 1998 to date FirstRand
has delivered significant shareholder value reflected in the market
capitalisation of the Group, which, including dividends, has grown by 74% to R89
billion.
`As far as a successor for Paul is concerned, we are extremely privileged to
have attracted an executive of the calibre of Sizwe. For the past seven years he
has steered Telkom SA through the process of transforming into a profitable and
efficient communications company, now ranked amongst the best in emerging
markets. During his tenure Telkom delivered exceptional growth in shareholder
value reflected in the share price increasing from R28 at the listing to R126
today.
`The decentralised structure of the Group has allowed us to develop highly
effective and empowered CEO`s in the underlying businesses. This structure will
create a strong support base for Sizwe and facilitate an expeditious handover by
Paul. Moreover we have the added benefit of Laurie`s immense experience, now to
be deployed more at a strategic level.
Sizwe Nxasana, who is a Chartered Accountant, founded Nkonki Sizwe Ntsaluba, the
first black-owned national firm of accountants in 1996 before joining Telkom.
He has been a non-executive director of FirstRand Bank since 2003 and served on
the NBS Boland Board with Paul Harris and GT Ferreira in 1995.
Comment from Sizwe Nxasana, incoming CEO of FirstRand Bank:
`I am very pleased to be joining FirstRand, particularly as CEO of FirstRand
Bank which, in my two years as a non-executive director, I have come to
recognise as one of the most dynamic companies operating in the South African
banking environment. I have enjoyed a long working relationship with the team
at FirstRand and I have a high regard for the entrepreneurial and empowering
culture they have established.`
15 September 2005
Sandton
Merchant Place
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 15/09/2005 09:50:23 AM
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