Conservative, two-century-old Pictet and young, restless Swiss banker Boris Collardi are a study in contrasts.

The announcement late last year sent shockwaves through the Swiss private banking industry as well as in Asia, where Boris Collardi had devoted much of his time to in recent years: the star CEO would leave Julius Baer for smaller rival Pictet, where he becomes a partner on June 1, 2018.

The two are unlikely bedfellows: Pictet is 213 years old, never been involved in a takeover, and values the careful conservatism of its consensus-based decision-making above all else.

Problems Piled up

Compared to that, Collardi is a hothead: the 43-year-old private banker is largely responsible for Julius Baer's explosive growth since 2009, including a rapacious deal-making spree.

The bank’s problems also piled up on his watch: a Russian arms scandal linked to its former Moscow head which has spurred the Swiss regulator into action as well as money laundering probes tied to Fifa and Petrobras.

Straying From Roots

But there are several compelling reasons for Pictet to have chosen Collardi: the bank, like many Geneva firms searching for growth, wants to stray away from its roots and grow more forcefully in German-speaking Switzerland. Collardi, who moves deftly between Geneva and Zurich, circles in his role as a a figurehead and advocate for the country’s private banking industry in recent years, is an ideal pick for this.

Pictet also needs to grow in Asia – something even the bank quietly concedes. The bank is probably smaller than crosstown rival Lombard Odier, which has been on a tear in Asia under Vincent Magnenat (click here to read finews.asia’s interview with Magnenat earlier this month). Collardi’s impeccable connections in the region are his biggest strength.

On the U.S. Hook

And perhaps most delicately, Pictet has several issues it prefers not to talk about: it is still in the crosshairs of U.S. prosecutors over helping wealthy Americans cheat on their taxes. The fate was shared by Credit Suisse, which settled for $2.5 billion four years ago – and by Julius Baer, which under Collardi paid $547 million to extricate itself three years ago.

Pictet is also on the hook with a wealthy Saudi oil baron, Rasheed al Rushaid, who wants $350 million in a suit which alleges the firm’s private bankers helped launder bribe money on the British Virgin Islands in the years from 2006 through 2008.

Far Too Short-term

A spokesman for the bank said legal cases and expertise in certain markets are a far too short-term view given Pictet's long-term planning perspective, and that Collardi had been chosen due to his unique personality, character, skills, and experience.

Pictet provides an escape from what promises to be a period of heightened scrutiny of Julius Baer, and the consolidation of several frenetic acquisition years. The fast-growing bank is at the center of a covert regulatory clean-up dubbed «Project Atlas», meant to clear out undesirable clients before they become legal liabilities. Julius Baer said it is cooperating with the probe, but didn't comment specifically. Finma, Switzerland's banking regulator, didn't comment.

CEO = Julius Baer

Collardi's new job may offer him more money and immeasurable prestige in Geneva as well as abroad, as finews.asia has previously written. Becoming a partner at a private bank was one of two dream options for Collardi, who grew up of modest means roughly 30 kilometer northeast of Geneva.

How will Collardi have to adjust? He effectively was the Julius Baer organization, as one peer puts it – he managed up very well (his board waved through almost every one of his major decisions, including several ballsy deals) and he maintained a firm grip on the bank’s day-to-day workings. He also wasn't afraid to be hands-on: Julius Baer private bankers with more than $500 million in client assets were given his mobile number, for example.

Adieu, Red Carpet

At Pictet, Collardi will be one of seven partners who share responsibility – and profits. Partners pore over some decisions for months or in some cases years, tabling negotiations if they cannot agree unanimously.

Collardi will also have to subjugate the glamor-seeking side of his lifestyle: no more red carpet St. Tropez appearances with Leonardo DiCaprio and no more 30-minute interviews with U.S. broadcaster «CNN Money».

His Biggest Dream

Many expect Collardi to clash culturally: «Pictet as an institution values discretion and consensus at a partner level above all. That isn’t the Boris Collardi culture,» as one banker from Geneva puts it. Collardi is nothing if not intellectually flexible, and he spent months laying the groundwork for his move.

As he leaves bustling Zurich for a more comfortable and predictable life in Geneva, he looks to have given up on his biggest personal dream: to one day run UBS or Credit Suisse. The two represent the highest perches in Swiss banking, and a role which has traditionally been a standard-bearer for the country’s finance industry as well as wider economy.