Credit Suisse chief executive Tidjane Thiam ousted in wake of spying scandal
Credit Suisse chief executive Tidjane Thiam has stepped down from his role following a bitter power struggle which was sparked by a lurid spying scandal that erupted in September.
Thiam’s departure – the board said it had “unanimously accepted” his resignation today – came despite powerful investors only this week backing the chief executive and instead pressing for chairman Urs Rohner to quit.
Thomas Gottstein, the head of the bank’s Swiss business, will take up the vacated role, making him the first Swiss national to be chief executive since 2002.
Switzerland’s second-biggest bank behind UBS has been mired in scandal since the lender hired a spying firm to tail Iqbal Khan, a star banker who was in charge of the wealth management division.
Khan alleged that up to three men hired by the bank chased him across Zurich, resulting in a physical confrontation. The spying firm denied Khan’s version of events, but confirmed the bank had hired it.
The scandal took a dark turn in October when it emerged that the consultant who acted as a middle man between Credit Suisse and the private investigation firm had committed suicide.
Details of the long-running feud between Thiam and Khan then began to emerge. Khan had apparently grown frustrated at his lack of profile within the bank and felt he was not assured of promotion.
The feud reportedly worsened when Khan bought and spent two years redeveloping the house right next door to Thiam’s in an up-market part of Zurich, leading the then-chief executive to officially complain to Credit Suisse.
The toxicity then spilled over at a party at Thiam’s, where Khan clashed with the chief executive’s partner over some trees. Thiam and Khan had to be separated.
Rival UBS has since poached Khan to work as head of its wealth division.
Rohner had initially backed Thiam, but his support was made more difficult after more spying revelations emerged. Thiam denies any knowledge of spying activities.
Today, the board said it backed Rohner, despite the pressure from investors such as Swiss adviser Ethos Foundation for him to quit.
“Urs Rohner has led the board of directors commendably during this turbulent time,” said board member Severin Schwan in the bank’s statement.
“After careful deliberations, the board has been unanimous in its actions, as well as in reaffirming its full support for the chairman to complete his term until April 2021,” Schwan added.
Tidjane Thiam statement
Thiam said:
I have agreed with the board that I will step down from my role as chief executive. I am proud of what the team has achieved during my tenure. We have turned Credit Suisse around. In particular, we have grown our leading Wealth Management franchise, reenergised our Global Markets business and pursued a bespoke regional approach to client coverage.
On the spying allegations, he added: “I had no knowledge of the observation of two former colleagues. It undoubtedly disturbed Credit Suisse and caused anxiety and hurt. I regret that this happened and it should never have taken place.”
Who is Thomas Gottstein?
Gottstein was a prominent investment banker and wealth manager before taking charge of Credit Suisse’s domestic operation.
Analysts have long hailed him as a potential successor to Thiam and has worked at the bank since 1999.
“Based on his deep and comprehensive experience in our business and in view of his impressive performance as head of our Swiss bank and his respect amongst our clients and employees, Thomas Gottstein is excellently positioned to lead Credit Suisse into the future,” Rohner said.