With the allocation of executive positions at Credit Suisse, a time of relentless self-evaluation is dawning for all Credit Suisse employees. They will often only play second fiddle in the new bank or leave the orchestra.
UBS is wasting no time acting. As it was completing the acquisition of Credit Suisse, important positions in the management of Credit Suisse were reshuffled on Monday. It became clear that only about one-fifth of the 160 management positions in the merged bank will come from the Credit Suisse side.
This is a clear signal to the rest of the staff of the once-proud Credit Suisse. Many of them should now finally realize they will often only play second fiddle in the new bank.
Bruised Egos
This bitter truth is likely to continue to gnaw at the self-image of those affected, who not so long ago liked to see themselves as the flagship of Swiss banking.
Credit Suisse employees in Switzerland looking to move to another bank because of the gloomy outlook do not, at first glance, have a bad hand.
More Jobs Advertised
At the end of May, Switzerland's ten largest banks and banking groups had just over 1,000 job openings. According to a survey by the job portal «Indeed», the banks of the Raiffeisen Group, in particular, were looking for more personnel.
There were also significantly more jobs advertised at Zuercher Kantonalbank, Julius Baer, and Postfinance.
Farewell Without Return
Those Credit Suisse employees entitled to a bonus are, however, virtually on the hook for the bank. At least in the case of management, the cash portion is to be paid out on a pro-rata basis to anyone leaving Credit Suisse within three years of the bonus grant.
In addition, the new masters of UBS have made it blatantly clear that for bankers seeking to leave now, the door to a return to the fold of the new banking colossus will remain closed to them.
Holding out for the Bonus
At Credit Suisse, which officially lost its independence to UBS yesterday, many resignations have been tendered in the past weeks. UBS CEO Sergio Ermotti admitted on Swiss television that around ten percent of the workforce turned their backs on Credit Suisse in the months preceding the takeover.
It seems new opportunities are more important to many leavers than remaining with a combined bank that has yet to be consolidated. Being tied to the office chair merely because of an announced bonus is no reason for skeptics to hold out.
Reliant on Skilled Workers
Given the wave of layoffs, Credit Suisse cannot afford to further scare away remaining deserving employees and lose even more staff if it wants to stop further hemorrhaging.
Even if the Credit Suisse subsidiary is closely integrated, it will take some time for the newly formed bank to get on track and gain momentum, it's unsurprising it's looking for new staff these days.
Security With a New Social Plan
In Switzerland, one of the ways to prevent large-scale departures is to introduce a social plan. It is designed to make redundancies more socially responsible and help employees affected by job cuts set the course for their internal or external careers.
Both banks already have a social plan in place. Even so, for the Swiss Bank Employees Association (SBPV), existing agreements are insufficient.
In a statement on Monday, it called for an overarching, joint social plan during the integration process that would apply for at least five years. In each case, the provision of the two social plans that is more advantageous for the bankers should apply.
Unfair Red Lines
In SBC's view, the unequal treatment of the staff of the two banks is reflected precisely in the newly defined red lines for the business activities of former Credit Suisse employees.
With these regulations, UBS wants to quickly take the reins in the acquired Credit Suisse and establish a new risk culture. However, the clash of two corporate cultures, which existed not least from the rivalry between the two banks, could initially lead to an explosive mixture.
More Protection and Retraining
According to SBC, the new social plan also needs additional measures such as stronger protection against dismissal for employees aged 55 and older, more generous benefits for older workers aged 50 and older, credit for length of service or covering the costs of further training and retraining, as well as labor market programs.
Stay or go: In any case, employees at both banks will be facing troubled times in the coming months.