Turmoil at the Top for Credit Suisse
Credit Suisse Group AG (NYSE:CS), one of the world's leading financial services providers, said today it has named Axel P. Lehmann as its new Chairman, replacing Antonio Horta-Osorio following his resignation in the wake of an internal probe into his personal conduct, including breaches of Covid-19 rules.
The departing Horta-Osorio said in a prepared statement, I regret that a number of my personal actions have led to difficulties for the bank and compromised my ability to represent the bank internally and externally. I therefore believe that my resignation is in the interest of the bank and its stakeholders at this crucial time. I wish my colleagues at Credit Suisse every success for the future.
Severin Schwan, Vice-Chairman and Lead Independent Director of the Board of Credit Suisse, released this quote: We respect Antonios decision and owe him considerable thanks for his leadership in defining the new strategy, which we will continue to implement over the coming months and years. Axel Lehmann as the new Chairman, with his extensive international and Swiss industry experience, is ideally suited to drive forward the strategic and cultural transformation of the bank. We wish Axel every success in his new role and Antonio all the best for the future.
The Board will propose Lehmann for election as Chairman at the upcoming Annual General Meeting on April 29, 2022. Lehmann said, I would like to thank the Board for the trust it has placed in me and look forward to working even more closely with the Board and the Executive Board. We have set the right course with the new strategy and will continue to embed a stronger risk culture across the firm. By executing our strategic plan in a timely and disciplined manner, without distraction, I am convinced that Credit Suisse will demonstrate the renewed strength and business focus needed to generate sustainable value for all of our stakeholders.
Lehmann was elected as a member of the Board of Directors of Credit Suisse by the Extraordinary General Meeting held on Oct. 1, 2021 and also became the Chair of the Risk Committee. He was formerly a member of the Group Executive Board of UBS Group (NYSE:UBS), initially as Group Chief Operating Officer and then as President of Personal and Corporate Banking and President of UBS Switzerland.
Horta-Osorio leaves less than nine months after he joined the bank to help it deal with the implosion of investment firm Archegos and the insolvency of British supply chain finance company Greensill Capital, while it was still reeling from the 2020 exit of CEO Tidjane Thiam over a spying scandal, Yahoo reported. The Portuguese banker unveiled a new strategy for Switzerland's no. 2 bank in November to focus on wealth management, rein in its investment bankers and curb a freewheeling culture.
Wall Street gives Credit Suisse an analyst consensus rating of Hold.' Its lowest stock price was $9.06 and its highest was $14.95 in the past 12 months.
This article first appeared on GuruFocus.
