The major Swiss bank has recently come under criticism.
(Photo: Reuters)
Zurich Setback for the Credit Suisse leadership: The shareholders of the major Swiss bank refuse to discharge the Board of Directors and the Executive Board for the 2020 financial year. At the General Meeting on Friday, almost 60 percent of the owners spoke out against discharge.
They followed the recommendation of the influential proxy advisors Institutional Shareholder Services (ISS) and Glass Lewis. ISS had pointed to a number of risk and control issues that entailed significant financial and reputational costs for the bank and, in turn, for its shareholders.
Chairman of the Board of Directors Axel Lehmann stated that he regretted the decision of the shareholders. However, an application by the shareholder representative Ethos Foundation, which was even more unpleasant for the top management, failed.
Ethos, which represents a number of Swiss pension funds, wanted to enforce a special external audit to address the collapse of Greensill-powered supply chain finance funds. The liquidation of the fund is likely to result in a loss of billions for Credit Suisse customers. However, around 88 percent of shareholders rejected the application for a special audit to be carried out.
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The new Credit Suisse President stressed in his speech that he wanted to win back the tarnished trust of customers and investors. The management will do everything to ensure that the major Swiss bank finds its way back to stability and success after a series of setbacks, Lehmann said.
Credit Suisse wants to get out of the “low form”
“Yes, she is in a low form,” he said in his first public appearance as CS President. “And yes, we need fundamental changes.” But the bank also has a strong customer base, is a leader in many areas and has a strong capital base.
“We are starting today with the aim of looking ahead and doing everything we can to ensure that Credit Suisse finds its way back to stability and success on its own after a series of setbacks,” he emphasized.
Credit Suisse has a clear plan to bring the bank back to profitable growth. “And thus win back the lasting trust of customers, employees, regulators and investors.”
The bank recently hired a number of new top managers to implement this plan. CFO David Mathers, chief legal officer Romeo Cerutti and Asia board member Helman Sitohang have to give up their posts. CEO Thomas Gottstein is one of now only two board members who were already in office before the collapse of the supply chain funds in March 2021.
Gottstein promised the shareholders that he would finally put the crisis year 2021 behind him: “We are fully concentrating on further developing our business and giving it fresh impetus”.
The bank wants to invest more in its core business, a newly aligned asset management. The goal, according to Gottstein: “Credit Suisse should once again become the bank that we can all be proud of.”
With material from Reuters.
More: Credit Suisse confirms board restructuring – first-quarter loss is higher than expected.