Whether Old Mutual pays Peter Moyo millions of rand to walk away or he is reinstated as CEO for the next four years to serve his full employment contract, the insurance group is likely to fork out large sums of money to him. If he is not reinstated, he might be forced to give up long-term incentives worth millions of rand.
It seems the only way in which the Old Mutual vs Peter Moyo dust-up is likely to end – after four months of both parties airing their dirty laundry – is for the insurance group to offer the axed-but-reinstated CEO a golden handshake.
In this scenario, Moyo would immediately end litigation against Old Mutual and walk away from the group – although handsomely rewarded – after he was fired on 18 June following a “breakdown of trust” between him and the board, chaired by Trevor Manuel.
This prompted Moyo to sue Old Mutual for unfair dismissal. The High Court in Johannesburg ruled in Moyo’s favour and twice ordered that he should be temporarily reinstated as CEO.
Although this scenario would spare Manuel and the other 12 board members the discomfort of ever working with Moyo again at the 174-year-old…