The Swiss bank is tasking veterans with all but one of its key units, finews.asia has learned. A look at the ultimate Credit Suisse survivor underpinning António Horta-Osório’s revamp.
Zurich-based Credit Suisse is sending several veterans into the battle to restore its key franchises: Andre Helfenstein will be remain head of its Swiss bank, while Helman Sitohang has locked in the Asia-Pacific region he has run since 2015.
The key wealth job is to be filled by year-end by homecoming veteran Francesco De Ferrari, finews.asia reported three weeks ago. Christian Meissner, formerly of Bank of America Merrill Lynch and Goldman Sachs, is tasked with stabilizing Credit Suisse’s roiled investment bank.
The cadre of old hands underscores that António Horta-Osório (pictured above) isn’t actually changing anything radically, operationally speaking. Much of the power behind the squad comes from Credit Suisse’s ultimate survivor: finance chief David Mathers.
CEO Under Microscope
As CEO Thomas Gottstein remains under a microscope despite Credit Suisse’s best efforts to bolster his standing, Mathers is a managerial linchpin. Chairman Horta-Osório tasked the 56-year-old – who has seen three chairmen and three CEOs come and go during his tenure – with key responsibility in Credit Suisse’s most recent overhaul.
Nevertheless, signs are emerging that the enormous influence Mathers has accumulated in 11 years in the Swiss bank’s management is about to be curbed. He is not, however, expected to leave the job before 2023 – a nearly unprecedentedly long tenure in the C-suite of a European bank.
Mathers’ value to the bank is now in stability and continuity: regulators in both Switzerland and the U.K. are accustomed to him. A 23-year-veteran of Credit Suisse (and CSFB), his institutional memory stands out in Credit Suisse’s top management.
Financial Wizardry
CEO Gottstein’s (pictured below) grasp on the job is widely considered to be tenuous after 20 months at the helm. Though the 57-year-old Swiss investment banker was instrumental in deploying Credit Suisse’s new strategy, two of the Swiss bank’s biggest problems (Greensill and Archegos) surfaced publicly on his watch.
Two management replacements – operations and technology chief Joanna Hannaford and risk boss David Wildermuth, both veterans of Goldman Sachs – arrive early next year.
The myriad of issues strengthens Mathers, whose influence far beyond that of a normal finance chief has long gone unquestioned. Besides overseeing Credit Suisse’s finances, Mathers is the bank’s top U.K. banker, a highly unusual set-up: the role tends to go to an operational executive on the ground and is available to local regulators.
Extra Revamp Tasks
Gottstein this month put him in charge of a program to slash up to 1.5 billion Swiss francs ($1.63 billion) from its annual spending bill, as well as its purchasing program. Mathers, who is based both in Zurich and London, appears to have promptly tasked the same procurement provider as UBS, as finews.asia reported last week.
He has also variously enjoyed wide authority over information technology and even part of operations for a time. From February, these areas will be delineated more clearly, when Hannaford begins at Credit Suisse.
«The simplification of the business model and IT infrastructure is key to improving effectiveness as well as to defining clear accountability and ownership,» Credit Suisse said as part of its overhaul two weeks ago. Though this doesn’t directly affect Mathers, it highlights Credit Suisse wants to better ring-fence roles.
C-Suite Heft In Stock
Mathers’ heft is underscored by the 10.5 million francs in Credit Suisse stock and awards that he owns – the highest of all current top executives. Detractors note that ex-CEO Tidjane Thiam would have wanted to replace him, but didn’t dare because Mathers, who began in equity research, was a rare and valuable direct link back to the investment bank.
Mathers is proving just as invaluable to Horta-Osório and to Gottstein – though he is likely to have his wings clipped, according to one observer. In particular, he is likely to relinquish the U.K. job, perhaps as soon as regional responsibilities are divulged by year-end.
This in turn hinges on yet another open question: Credit Suisse drafted a new organization without naming their respective heads. A spokesman for Credit Suisse declined to comment; Mathers didn’t respond to a request for comment.
Claude Baumann contributed reporting
