CEO Nhleko, MTN part ways next March

2 Mar 2010

MTN yesterday ended months of speculation about the future of CEO Phuthuma Nhleko, announcing he would step down next March. Nhleko presided over several years of strong growth after his appointment in 2002, and turned MTN into the continent's biggest cellular operator with operations in 21 countries.

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

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