Head Hunters Seek New Generation of Leaders in South Africa

(Bloomberg) -- There may be a silver lining to South Africa's growing CEO crisis.

The departures of more than eight chief executives from companies such as Absa Group and Eskom Holdings is making room for the next generation of younger, more dynamic leaders to navigate the country's top institutions through a prolonged economic downturn.

Read more: There's a CEO Crisis in South Africa and No One Is Stepping Up

The exodus is symptomatic of South Africa's weak economic growth, policy uncertainty and failures in corporate governance, according to Guy Lundy, a consultant at executive recruitment firm Spencer Stuart, who's seen an uptick in activity amid the crisis.

“We are seeing many CEO and CFO changes taking place, which is a clear indication that boards are worried about the numbers.” he said. “Boards are looking for somebody new with different ideas to do things differently.”

The exits also offer an opportunity for board rooms to break with costly traditions, which have seen decade-long management tenures and the rise of the “superhero” CEO -- leaders with huge influence over board members and investors -- such as former Steinhoff CEO Markus Jooste.

Related: Steinhoff Seeks $59 Million From Former-CEO After Crisis

More firms are hiring advisers to help with succession planning, according to Lundy. They're also looking for younger, innovative, team players to lead South Africa's top institutions, he said. The big question is where they're going to find them.

To contact the reporter on this story: Roxanne Henderson in Johannesburg at rhenderson56@bloomberg.net

To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Alastair Reed

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