Zenith Bank Plc's Smooth Succession

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Monday, April 07, 2014, 5:51 PM / Research

 

In line with global corporate governance practices regarding CEO succession, Zenith Bank Plc through its Board of Directors has again been able to ensure a smooth succession in the leadership of its organisation.

 

This is evident in the recent appointment and approval of Mr. Peter Olisamedua Amangbo as the Group Managing Director/CEO designate of the bank effective June 11, 2014, following the presidential appointment and senatorial confirmation of its outgoing managing director/chief executive, Mr. Godwin Emefiele, as the Central Bank of Nigeria’s Governor.

 

The smooth succession which is celebrated by Zenith Bank’s shareholders is one we commend, as this is another show of Zenith Bank’s ability to not only ensure it sustains excellence in its business but also mitigate the risk associated with leadership transitions.

 

It should be recalled that this smooth transition in its leadership was also witnessed in 2010, when Godwin Emefiele was appointed to take over from the retiring Jim Ovia as Managing Director/Chief Executive Officer.

 

This further gives credence to the corporate governance structure of Zenith Bank Plc, as well as its effort to remain a world class organisation that sustains excellence in order to ensure a favourable performance that benefits its shareholders.

 

From a fundamental analysis view, this would affect the fair value of Zenith Bank (whose current market price stands at N21.00k) positively, as it is a plus in terms of a good corporate governance and risk management which are key qualitative drivers that can increase the net worth of the organisation whose share price based on valuation statistics is currently targeted around N22.00k - N26.00k.

 

Alongside its shareholders, we expect the new CEO, Mr Peter Amangbo to ride on Emefiele’s legacy, and maintain the stability, efficiency, dynamism, excellence and profitability of Zenith Bank Plc under Mr Emefiele’s watch.

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