- The Capital Markets Authority set the age limit for chief executives of Nairobi Security Exchange-listed banks at 70
- James Mwangi was born in 1962, so he is now at least 62, giving him eight more years at the helm of the bank
- The career banker refused to accept his hefty 2023 bonus despite having qualified for it, citing that some Equity subsidiaries had failed to achieve their KPIs
- Mwangi has been Equity Bank’s executive since 1994 and CEO since 2004, revolutionising the bank from a collapsing building cooperative
Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.
Equity Bank Group CEO James Mwangi, 62, has spoken about succession plans at the lender as the 70-year limit set by the Capital Market Authority continues to draw near.
Speaking during the 20th Annual General Meeting, Mwangi said that his succession was the least of his worries, explaining that over the years, he has been investing in capacity building and attracting the right talents.
He expressed confidence that the bank already has the right hands to replace him in case he becomes incapacitated at any point before he officially retires.
“That is the least of my worries…what would happen to Equity? I’m certain that we have institutionalized; I don’t manage the bank. I’ve created a structure that manages the bank. I play the role of orchestrating the music, but the choir provides you with the music, so the problem would be if we didn’t have the choir.
You can see how deep the bench is in terms of skills, competencies, and experience. We’re able to attract the skills and competencies that match our position,” said the CEO as he introduced more senior staff who recently joined the bank from other organizations.
The topic of succession at Equity Bank has attracted a lot of attention, with some observers speculating that the brand may not withstand the storm without Mwangi at the helm.
Columbia Business School Case writes in the Jerome Chazen Case Series:
“But widely celebrated as the inspirational leader behind Equity’s vision, brand, and passionate culture that have transformed the African banking industry, there are also concerns that the Equity brand may be too dependent on the charismatic persona of James Mwangi. The eventual succession will need to be a considered and smooth process.”
According to Mwangi, his successor would be picked from within, from senior management who understand the organizational culture, or even outsourced as long as the person fits the bill.
“Equity can grow people from within…the position of group CEO can be filled from within. People who have been with the organization for many years and who understand the culture, and the board have confidence in their capability. It can be filled by attracting talent that will be required at that point in time,” Mwangi continued.
Equity CEO James Mwangi rejects bonus
Equity Chairman Prof. Isaac Macharia said the board was aware of a succession plan and allayed fears that the Equity brand would not survive without James Mwangi.
“The group has a deep and wide bench. You can’t build a company of this size on the basis of only one person. Equity is not James Mwangi, and James Mwangi is not Equity,” said Macharia.
Macharia revealed during the event that Mwangi had qualified for a heavy bonus after meeting his KPIs for the year 2023, but he declined to take it.
According to Mwangi, he rejected the fat bonus in solidarity with subsidiaries that did not meet their KPIs.
Best performing Equity Group subsidiary
The CEO revealed that the Equity DRC subsidiary was the best performing, raking in 32% of deposits and loans and contributing 25% of profits.
He attributed the DRC’s performance to the acquisition of Koja Bank in DRC, which he said expanded Equity’s balance sheet by 54%.
Source: TUKO.co.ke