An MTN statement said Nhleko had agreed to remain as acting CEO beyond the expiry of his current contract in June, and would “continue in his current role up to March 2011” to focus on key objectives “including facilitating a seamless succession”.
Nhleko, told Business Day he had discussed his future with the MTN board for several months, and had reached his decision “fairly recently”.
“I felt that nine years as CEO is quite a fair and reasonable time to have contributed. Extending my contract would mean … nearly 15 years as CEO — I don't think in this day and age that's desirable.”
Nhleko's decision follows the collapse of a proposed tie-up with Bharti Airtel last year. The deal would have seen MTN develop a presence in India.
“Could (the success of the Bharti deal) have had an impact on how I would view the tenure? It's quite possible,” Nhleko said. “But that's sheer speculation.”
He railed at perceptions that growth had been easy “because the mobile industry was growing quickly” in Africa during his tenure. “Some of the challenges we had to overcome, rolling out the footprint in varied geographies, were quite hard.”
Nhleko said he did not intend to play an active role in helping to choose a successor and was tight lipped regarding his plans. “I don't believe MTN will be the end of my commercial career. But I'm 200% focused on the work to be done between now and March 2011. After that period I'll be thinking about where I fit in within the corporate landscape.”
MTN chairman Cyril Ramaphosa thanked Nhleko for his “outstanding vision and leadership”, adding that his “commitment to continue to lead the business until a successor is in place is greatly appreciated”.
Analyst Arthur Goldstuck, however, said Nhleko's standing with the board declined after the Bharti deal collapsed. It was “far more in Bharti's interests”.
Source: Business Day
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
