Scandal-stricken Credit Suisse poised for management shakeup
Beleaguered lender Credit Suisse is lining up a management shakeup as new chairman Axel Lehmann looks to put the lender back on track following a string of scandals.
The firm’s Chief Legal Officer Romeo Cerutti, finance chief David Mathers, and Asia-Pacific regional boss Helman Sitohang are set to step down, Swiss Sunday newspaper NZZ am Sonntag reported.
The three executives are the longest serving of the lender’s 12-member executive board.
A spokesperson for the bank told NZZ that the bank had introduced a new strategy and organisational structure last November that scaled back its investment banking division and focused on wealth management.
“As part of this work, senior management under the leadership of the group CEO together with the board of directors is regularly discussing succession plans and is reviewing senior appointments for certain positions, including for certain legal entities, regions and the executive board,” the spokesperson said.
“However, no board decisions have been taken and we will communicate at the appropriate time.”
Lehmann is looking to steady the ship after a turbulent period that has seen Credit Suisse lose billions following the collapse of Archegos Capital and supply chain finance firm Greensill Capital.
Veteran banker Antonio Horta Osario was also ousted as Chairman of the firm after an internal investigation uncovered a series of covid-19 breaches.
The woes deepened last week as bosses warned the bank was careering towards a loss in the first quarter, after legal costs surged and the Russia-Ukraine crisis hit the bottom line.
The firm said legal provisions were set to surge by around 600 million Swiss francs ($631 million) to approximately 700 million francs in the first three months of the year.
Proxy advisers Glass Lewis and ISS have recommended shareholders vote against discharging the bank’s board and management from liability for the 2020 financial year, with shareholders calling for bosses to first publish a full report on the firm’s failings over Greensill.