1. Is Credit Suisse Better off Now?
The Pros
When Thiam took on the Credit Suisse job, he stressed he wasn’t someone who would announce a new vision every three months. One can take him at his word: the three-year plan he presented for Credit Suisse in the fall of 2015 has been completed.
Apart from the adjustment of some profit targets, Credit Suisse is now just where the 56-year-old wanted it to be: A globally active wealth manager, with a strong focus on Switzerland and Asia, and a more efficient investment bank.
With two successful capital increases Thiam achieved two things: the stabilization of a bank which had become notoriously under-capitalized during Dougan's reign, and the reassurance of a disillusioned shareholder base.
Thiam was also spot-on with cost reduction plans. Given the rising compliance costs and the high investment demands of the technology infrastructure, this was no walk in the park.
The Cons
The balance sheet isn’t perfect: Early on Thiam was forced to rejig the profit goals for wealth management and in Asia. Credit Suisse was forced to alter its Swiss strategy halfway through after Thiam decided on a further capital increase rather than a listing of the Swiss banking unit.
2. Is Thiam a Good Manager?
The Pros
Thiam made it clear to the Swiss public right from the start that he was a team player. He talked of «his stars» when presenting his new leadership team. In reality, Thiam surrounded himself with a team of loyal managers, some of whom – like Iqbal Khan and Pierre-Olivier Bouée – hailed from the consultancy sector and tick like he does.
The fact this management team stuck together and displayed great loyalty through the three turbulent years has to be marked down as a remarkable performance by Thiam. Only though who deviated from his course – like global markets head Tim O' Hara, who was dispatched by Thiam nearly two years ago – were ruthlessly shut out.
The Cons
Thiam's top-down-management style may have suited the difficult situation in which Credit Suisse found itself at the time, but the fallout was clear for all to see. While the interim goals kept the management team happy, it caused a lot of frustration at the lower levels in the bank.
The CEO's strong focus on pure results and figures were rigorously pursued by his managers. This results-orientated management caused widespread personnel casualties and undermined staff motivation.
As head of the second-largest Swiss bank, Thiam always kept a very low profile, and it was often said he preferred to spend his weekends in London. Through his experiences at McKinsey, he remains a consultant rather than a banker: an excellent analyst and strategist who is happy to leave customer relations to someone else.
