Time is running out for António Horta-Osório to make crucial decisions for his strategy due next month. His demonstrative allegiance to the CEO is holding up the process and causing tension within the bank.
Credit Suisse’s António Horta-Osório is expected to come up with a new game plan by early November. Until now, the chair-of-five months is preparing to rearrange key units within the organization, but what is missing are the people to run these sections, someone close to the bank’s management told finews.com.
The chair’s desperate display of support for CEO Thomas Gottstein has irked some of the candidates, hoping to head these divisions, which is complicating the nomination process, the person familiar said.
Support at a Cost
Horta-Osório has certainly not missed an opportunity to openly back Gottstein, since the scathing «Financial Times» article (behind a paywall) questioned the CEO’s ability to run the Swiss bank. Now his unconditional support of Gottstein is not only costing him credibility, but is also limiting his scope to take action.
Retouch vs. Overhaul
The highly anticipated review is unlikely to bring about radical measures, such as a severing of its investment bank, according to a «Tages-Anzeiger» report (behind a paywall) Friday, citing people with knowledge of the matter. Private banking, on the other hand, could be up for a significant revamp.
Following its three-way split under the bank’s previous CEO Tidjane Thiam, the private wealth business could be pulled back into one division, according to the Swiss daily. Who will lead the global private wealth business is open. Horta-Osório still has a month to pick someone.
