New Credit Suisse boss Thomas Gottstein is emerging as a linchpin in a public-private effort to shore up the economy.
Thomas Gottstein was just another investment banker with a golf habit when he was parachuted into the top Credit Suisse job in February. An economic crisis sparked by a worldwide pandemic just weeks later has lent him – and the battered Swiss bank – a very different profile.
The Swiss banker may not show his ambition as openly as other stars like private banker Iqbal Khan, an ex-colleague who defected to UBS last year. The 56-year-old Gottstein was visibly nervous alongside Thiam at the February 14 handover – but quickly found his footing.
Study in CEO Contrasts
Ultimately, any investment banking veteran like Gottstein at the peak of his career would have seized the opportunity to become CEO of a major bank. He has already carved out a powerful persona in the job as the executive determined to restore Credit Suisse's reputation following the damaging spy scandal which ousted his «friend,» Thiam.
A plain-spoken and jocular banker, Gottstein is a personality contrast to Thiam, who didn't suffer fools gladly and was frequently perceived by colleagues aloof and impatient. The new CEO's intention early in his tenure was to restore a more normal tone with employees and to give face-time to various stakeholders.
Floating Swiss «Bazooka»
The coronavirus pandemic is an ironic helper: two weeks into his job, Gottstein was the first Swiss banker to float the idea of a government and private sector rescue package. This week, the Swiss government unleashed a «bazooka» of measures including fully-backed bank loans.
One day later, Credit Suisse, a major Swiss corporate lender, granted its first small business loan. Thanks in large part to Gottstein, the bank is carving out a name for itself in the crisis as a ready helper to small- and mid-sized firms in Switzerland.
Speaking to the People
He also won plaudits internally: he ordered staff to work from home early on, gave parents additional leave, and pledged to not cut jobs during the crisis. He struck the right tone in a joint missive with Chairman Urs Rohner (unthinkable under previous management), and took the opportunity to talk up the Swiss economic plan.
Gottstein spoke to Swiss weekly glossy «Schweizer Illustrierten» from his own office at home about small business, bonuses, home-schooling his son, and his family's two Boston terrier dogs. The people magazine is a savvy pick for a long-standing investment banker looking to smooth ruffled feathers with retail shareholders.
Striking Right Tone
He also struck the right tone: «I'm very much for solidarity in crisis. As a bank, we want support the real economy quickly and unbureaucratically with inexpensive loans,» he told the outlet. Keenly aware of his image, Gottstein is using the crisis as an opportunity in his overarching plan to restore Credit Suisse's name.
One of his main goals coming into the CEO job was to demonstrate appreciation to staff, practice transparency, and improve communication with them, a person familiar with Gottstein's thinking said. The current crisis affords him ample opportunity to do so – and thus set a powerful contrast to his predecessor.
