ZURICH/HONG KONG (Reuters) – The announcement by Julius Baer this week that it had employed 5 senior bankers from Credit Suisse underscores the challenge dealing with Chief Executive Tidjane Thiam as he seeks to reassure employees and buyers within the wake of a spying scandal.
FILE PHOTO: Swiss financial institution Credit Suisse CEO Tidjane Thiam waits for a information convention after the Swiss Global Digital Summit in Geneva, Switzerland, September 2, 2019. REUTERS/Denis Balibouse/File Photo
Preventing employees defections was on the coronary heart of a choice by Credit Suisse to place former worldwide wealth-management head Iqbal Khan beneath surveillance. But that transfer — which spilled into the open when Khan had an altercation on the road with the lads who have been trailing him — has by the financial institution’s personal admission brought about extreme reputational injury.
The staff becoming a member of Julius Baer had left Credit Suisse earlier than the espionage scandal broke however the debacle and the financial institution’s efforts to attract a line beneath it have enthused rivals to speed up their poaching efforts, headhunters say.
Wealth managers are the lifeblood of personal banking, one of many quickest rising companies within the international monetary sector, holding the keys to shut shopper relationships value hundreds of thousands or billions in belongings.
“A lot of people are uncertain about…the (bank’s) ability to attract new bankers,” stated Rahul Sen, a London-based international chief for personal banking at headhunter Boyden. “They botched up the entire Iqbal Khan situation.”
Credit Suisse declined to touch upon the employees departures and any measures it was deploying to retain prime expertise.
Credit Suisse’s probe into the spying scandal, which exonerated Thiam of any involvement, has did not quell employees disquiet, notably when it emerged Thiam and Khan had a private dispute which prompted the previous wealth administration chief to go away.
Under Khan’s watch, income at Credit Suisse’s wealth administration enterprise had greater than doubled. He joined arch-rival UBS as co-head of the wealth administration enterprise this week.
Credit Suisse’s investigation into its surveillance of Khan concluded that Chief Operating Officer Pierre-Olivier Bouee had initiated it to see if Khan was making an attempt to poach former colleagues to hitch him at UBS.
No proof emerged that he had tried to take staff or shoppers from Credit Suisse.
Since his departure, nevertheless, others have pounced and whereas job-hopping is widespread within the personal banking sector, the exit of senior managers provides to the strain on Thiam, who has to cope with robust market circumstances and proceed to handle prices after seeing by way of a three-year restructuring interval.
Recent losses embrace a Dubai-based senior personal banker who is predicted to take at the least three workforce members to a rival, and a Hong Kong-based China banker who shall be taking alongside a dozen of his colleagues at Credit Suisse to a European peer subsequent month, individuals with information of the matter stated. Another senior banker, who managed about 700 million Swiss francs ($701 million) of shopper belongings in Portugal and Brazil, left final week and can be becoming a member of a rival towards the top of this yr, one of many individuals stated.
Britain’s Barclays and Julius Baer employed a complete of 14 bankers from Credit Suisse’s International Wealth Management enterprise, they introduced final month.
Editing by Carmel Crimmins