A push to slash spending by 15 percent at Leonteq won't stop at management: the derivatives boutique said it will thin its top ranks. Who won, and who lost out?

Crisis-engulfed Leonteq has zig-zagged in a frenzy on its top echelon in recent months: the derivatives specialist only just added to top management in October, and announced on Thursday that it will streamline the C-Suite again as part of a major spending overhaul.

Top management around co-founder and Chief Executive Jan Schoch will be reduced to six people, from 11, Leonteq said. The Zurich-based firm billed the move a bid to «strengthen the efficiency and accountability of the management.»

Signs of Chaos 

Just over three months ago, Schoch had strengthened the top layer to 11 people from eight, arguing that Leonteq's complexity demanded it. 

The revolving door in its C-Suite is indicative of the chaos and growing pains at Leonteq: two top executives – risk chief Daniel Cangemi and innovation chief Yann Besnard – were gone by November.

Last month, Schoch sought to marshall his troops, flagging the pain to come, as finews.com reported exclusively.

Catchment for Demoted Executives

Now, Leonteq has named two new executives into top management: Tobias Wohlfart as head of banking solutions, and Ruediger Assion as communications chief. Both are effectively being demoted through top management's slimming down.

Instead, Leonteq will set up a layer of committee management underneath the five top executives – a sort of catchment for those who have been demoted by the move, including technology chief Justin Arbuckle, business development head Sandro Dorigo, markets head Steven Downey, as well as Wohlfahrt and Assion.

Leonteq's top management will consist of:

  • Jan Schoch, CEO
  • Marco Amato, finance and risk head 
  • Jochen Kuehn, head of insurance and wealth planning
  • Manish Patnaik, operating chief
  • Ulrich Sauter, general counsel
  • David Schmid, investment and banking solutions head

It is questionable whether the dual-layered organization leads to greater efficiency: with Schmid and Wohlfahrt, Leonteq already has two executives responsible for banking solutions – one in top management, and one in the second tier.