ZCZC
BCN-03
SWITZERLAND-BANKING-ECONOMY
Credit Suisse shareholders urged to vote against chairman after spy scandal
ZURICH, April 22, 2020 (BSS/AFP) – Shareholders should oppose the re-election of Swiss banking giant Credit Suisse’s chairman Urs Rohner following a massive spying scandal, the powerful Ethos shareholder organisation, representing 225 Swiss pension funds, recommended on Tuesday.
Ahead of the Credit Suisse Group’s annual general meeting on April 30, Ethos also recommended that shareholders oppose the bank’s board and executive remuneration in light of the negative impact that the “surveillance case” had had on the bank’s reputation.
The scandal broke last September, with the discovery that surveillance had been ordered on Iqbal Khan, a star banker and former wealth management chief.
Khan was tailed after he jumped ship to competitor UBS amid concerns he was preparing to poach employees and clients.
Subsequent revelations showed the bank had also spied on another employee, and it has also been accused of surveillance of members of the environmental campaign group Greenpeace.
An initial investigation blamed former chief operating officer Pierre-Olivier Bouee, who stepped down in October, but found no indication the rest of the top brass, including then chief executive Tidjane Thiam, were involved in or even aware of the spying activities.
Thiam was forced to resign in February, but walked away with nearly $11 million in pay and bonuses.
“Ethos considers that the level of variable remuneration granted to the members of executive management for 2019 doesn’t sufficiently take into account the surveillance case and very negative impact on Credit Suisse’s reputation,” the foundation said in a statement.
“In particular, the annual bonus of the former CEO, who was forced to resign in February 2020 following this affair, is considered excessive,” it said.
It added that since 2017 it had been concerned by a range of cases that “have tarnished the bank’s reputation”, insisting that “change of chairmanship is necessary to restore shareholder trust.”
“Ethos therefore recommends to oppose the re-election of Mr. Urs Rohner as chairman of the board of directors.”
The foundation also said that in light of the uncertainties generated by the COVID-19 pandemic, it recommends shareholders renounce dividend payments for the 2019 financial year.
BSS/AFP/MMA/1020HRS