Nairobi, Kenya – Equity Bank Group CEO James Mwangi, 62, has provided insights into the bank’s future leadership, as the Capital Markets Authority’s age limit for chief executives of Nairobi Security Exchange-listed banks looms. With the CEO turning 70 in eight years, the question of who will succeed him is becoming increasingly pertinent.
Who is James Mwangi?
James Mwangi CBS is a Kenyan accountant, career banker, businessman, and entrepreneur. He is the current Group Managing Director and Group Chief Executive Officer of Equity Group Holdings Plc, the banking conglomerate with one of the largest customer bases on the African continent, with over 14 million as of December 2019.
When did James mention his successor?
Mwangi has been at the helm of Equity Bank since 2004. He has been a key figure in its transformation since joining as an executive in 1994. He addressed this topic during the bank’s 20th Annual General Meeting. He assured shareholders and stakeholders that the bank has a solid succession plan in place, emphasizing his commitment to building a robust leadership team over the years.
Who will replace James Mwangi as Equity Bank CEO?
“Succession planning is not about earmarking a single individual to take over after I leave,” Mwangi stated. “It is about creating a bench of leaders who are competent and will be able to lead. When I look at Equity, the board will be spoilt for choice over who to pick. What would happen to Equity? I’m certain that we have institutionalized it; 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.”
The former executive’s remarks highlight his confidence in the bank’s leadership team. This includes several senior staff members who recently joined from other organizations. This deep bench of talent is seen as crucial to ensuring a smooth transition when the time comes for Mwangi to step down.
What will happen if James Mwangi leaves Equity Bank?
Despite speculation about the potential impact of his departure, Mwangi remains unfazed. He believes that the organization’s strength lies in its collective leadership rather than in any single individual. This sentiment was echoed by Equity chairman Isaac Macharia, who assured stakeholders that the bank’s future does not hinge solely on the retiring CEO.
“The group has a deep and wide bench,” Macharia said. “You can’t build a company of this size based on only one person. Equity is not James Mwangi and James Mwangi is not Equity.”
How Mwangi rejected a bonus from Equity Bank
In addition to discussing succession plans, Mwangi also made headlines by declining a significant bonus he qualified for in 2023. Despite meeting his Key Performance Indicators (KPIs), the CEO chose to reject the bonus in solidarity with subsidiaries that did not achieve their targets.
“I declined my bonus in sympathy with our subsidiaries that did not qualify,” Mwangi explained. “I believe this year we will all qualify.”
Which branch of Equity Bank is the best in Africa?
The best-performing subsidiary within the Equity Group was the Equity DRC, which accounted for 32% of deposits and loans and contributed 25% of the group’s profits. Mwangi attributed this success to the acquisition of Koja Bank in the Democratic Republic of Congo, which significantly expanded Equity’s balance sheet by 54%.
What James Mwangi leaves behind
As Mwangi approaches the end of his tenure, his focus remains on ensuring that Equity Bank continues to thrive under new leadership. His strategic investments in talent and leadership development are designed to safeguard the bank’s future, demonstrating his commitment to the institution’s long-term success.
