South African financial services group Momentum has increased its retirement age from 60 to 63, joining other major companies such as Nedbank and Standard Bank in making similar changes. The move is attributed to skills shortages and a war for talent in the sector. Momentum, which owns household brands like Metropolitan Life and Multiply, revealed the new retirement age in its annual report. The change will allow group CEO Jeanette Marais and her executive team to remain at the helm for a longer period.
Jeanette Marais, 58, has been Momentum's CEO since 2023 and has led the company's exponential growth in earnings and share price, which has surged 95% over the past three years. Marais began her career with Momentum in 1990 and has held various leadership positions at PSG, Stanlib, Old Mutual, and Allan Gray. She was elevated to the CEO role in 2023 after Hillie Meyer's retirement. Marais has an executive MBA from the International Institute for Management Development in Lausanne, Switzerland.
Momentum's annual report, published this week, did not provide reasons for the change in retirement age. However, the move is part of a larger trend in corporate South Africa, particularly in financial services, where companies are reevaluating their retirement ages to remain competitive in a tight labor market. The country's largest bank by assets, Standard Bank, increased its executives' retirement age to 63 years last year, while Nedbank made a similar change.
The change in retirement age will benefit Marais and her executive team, allowing them to continue leading the company for a longer period. Marais has been instrumental in driving Momentum's "Impact" strategy, launched in 2024, which aims to achieve R7bn in earnings by 2027. The company achieved this target a year early, and board chair Tyrone Soondarjee praised Marais and her team's execution of the strategy.
Soondarjee, in his inaugural letter to shareholders, highlighted the exceptional performance delivered under Marais' leadership. He noted that the group's clear strategic direction, disciplined execution, and rigorous governance allowed it to achieve outstanding results while bolstering its resilience and future prospects. Marais has also started formulating the company's strategy beyond 2027.
Marais' total pay for the year was R45m, up from R35.3m in the prior year. Group CFO Risto Ketola's pay also increased from R28m to R36.7m. Momentum's breakout performance in the year under review was driven by various factors, including its appointment as administrator for Bonitas and the successful turnaround of Momentum Insure and Metropolitan.
The company's Indian outfit, Aditya Birla Health Insurance, also showed signs of progress towards sustainable profitability. Momentum's market value is R51bn on the JSE. The group is committed to creating lasting value for clients, shareholders, and broader stakeholders through rigorous governance, strategic foresight, and disciplined execution.
Key points
- Momentum raises retirement age to 63, following Nedbank and Standard Bank.
- CEO Jeanette Marais' leadership drives company's exponential growth in earnings and share price.
- Company achieves R7bn earnings target a year early, driven by "Impact" strategy.
