The long-standing Credit Suisse chairman faces a bumpy remaining 12 months in office. He is already behind on his biggest task: replacing himself.
When Urs Rohner took the chairman's seat at Credit Suisse nine years ago, he already knew the Swiss bank inside out: he'd been a director for two years and before that, a top executive for five.
For his successor, the move won't be quite as smooth: Rohner is leaving in April next year, but Credit Suisse hasn't made much headway tackling the succession issue yet.
Term Limits Hold
This is likely because Rohner, whose tenure has been lackluster, had sought a way out of a pledge last month that this year would be his last. He reportedly sounded out big Credit Suisse investors about suspending term limits to do so, but shareholders put the kibosh on the idea (Rohner disputes that he floated an extension of his term).
A brilliant tactician and power player, Rohner had just weeks before been able to count on Blackrock, Norges, and the Olayan clan in a showdown with the bank's biggest shareholder, Harris Associates. The Chicago-based mutual fund had wanted Rohner to leave and CEO Tidjane Thiam to remain.
Vanishing List
Credit Suisse's succession committee – led by Rohner himself – has less than a year to find a replacement chairman. The candidate should be capable of smoothing the fraught dialogue with shareholders that Rohner leaves behind.
Rohner apparently hasn't identified any candidates yet, or held any talks. The existing board is no help: a promising candidate (Alexander Gut) is throwing in the towel, and deputy chairman Severin Schwan doesn't want the job. No other board members fulfill the criteria: availability for a full-time role, big banking experience, and entrenched in Switzerland.
Difficult Circumstances
Rohner lost valuable time in the four embattled months of a spying scandal which cost the CEO and operating chief their jobs. Credit Suisse's bungled response to the crisis was partly due to the fact that Rohner himself was a major player in events leading up to it.
The coronavirus pandemic isn't helping: none of the international lobby groups Rohner sits on like the Institute of International Finance, IIF, or the European Financial Services Roundtable will meet in person in coming months (notably, UBS Chairman Axel Weber courted incoming CEO Ralph Hamers at IIF meetings).
Refusal to Assume Blame
This limits the list of candidates dramatically: ex-central bank director Philipp Hildebrand, now a vice-chairman at Blackrock, is regularly cited as a potential successor to Rohner (or UBS' Weber). Ex-UBS top executive Ulrich Koerner as well.
The main challenge for Rohner's replacement is that he or she can credibly represent the bank and shield new CEO Thomas Gottstein. Rohner has battled critics since 2014, when he refused to accept blame for a $2.5 billion criminal fine for tax offenses during his time as legal chief.
