Old Mutual: Shareholders got stiffed by the Peter Moyo spat
Neither the insurer nor its former CEO have emerged with much glory, and investors have taken the pain
Old Mutual has no choice but to see the battle with former CEO Peter Moyo play out to the very last. There might be a temptation to settle things quietly, behind closed doors, and hope the whole thing blows over and is forgotten about by year-end.
Certainly some shareholders, weary of the insurance giant making headlines for all the wrong reasons, would like to see that happen. However this option is complicated by the fact that any payment to Moyo would have to be made public due to disclosure requirements.
Rightly or wrongly, the 20% slump in the share price (https://www.sharenet.co.za/v3/quickshare.php?scode=OMU), since the dramatic announcement in May that Moyo had been suspended, has been attributed entirely to the rather ungainly public spat...