Naming a replacement for Urs Rohner at Credit Suisse is an increasingly drawn-out procedure. The search for a chairman suggests that not everything has gone according to plan.

1. Thin Substitutes' Bench

Identifying a new chair of the board of directors is one of the most straightforward replacements in banking. But up until a year ago, Urs Rohner didn't have a proper succession plan. Potential candidates on the board are thin on the ground.

The only possible candidate from within was Alexander Gut – he left the board in spring. The substitutes' bench is thin and should have been replenished in good time. One such person was Jo Oechslin, the former chief risk officer. He left for a position at Swiss Re instead.

2. Valuable Time Wasted on a Spying Scandal
 
Starting in the autumn of 2019 and well into 2020, the spying scandal that engulfed the departure of Iqbal Khan was the dominant issue on the table of CS. Chairman Rohner was heavily involved in «Spygate». He first fired COO Pierre-Olivier Bouée, but it soon emerged that the case wouldn't die down so easily and the financial-market regulator Finma sent an investigator to look into the affair at the bank.

The relationship between Rohner and CEO Tidjane Thiam soured, which upset anchor-investors such as Harris Associates. Rohner eventually prevailed when Thiam left in February, but his victory was a pyrrhic victory.

3. Hopes for an Extension Evaporated

Because the rift between chairman and investors didn't heal. A year ago, reports emerged about Rohner wanting an extension to his deal. Harris Associates however demanded the bank to stick to the original tenure of their chairman otherwise they would ask for his resignation at the annual general meeting in April. Rohner in March duly pronounced his intention to stand for reelection for one last time only – which was when the search for a successor became rather more urgent.

4. Communication Gone Haywire

The public communication on the search for a replacement is evidently a challenge. More than a year ago, there was talk of a shortlist. In February, the bank said that a proper succession planning was underway, suggesting that the new chairman or chairwoman might be presented at the AGM in April. No such luck, so the talk returned to the shortlist. In August, Rohner said that the succession planning was ongoing. It doesn't seem to be getting anywhere.

5. Chairman Is Looking for a Chairman

It has been said on occasions that deputy chairman Severin Schwan was the driving force behind the search. Schwan is part of the nominations committee, together with Kai Nargolwala and Rohner – the head of the committee... is Rohner. So, the chairman is looking for a chairman.

But Rohner has to take the hurdle of satisfying major shareholders who need to be taken on board to wave through the candidate-select. After Rohner's attempt to get himself an extension, some shareholders are less-than-keen on his choices. Which doesn't help, of course.

6. Even the Rumors Remain Vague

With an overpowering Silenzio Stampa at CS, the rumor-mill remains a muted affair. Big media companies including «Tages-Anzeiger» (behind paywall) restricted themselves to saying whom they thought would never make the cut. But even the people mentioned as potential candidates, for instance by finews.com, UBS-banker Ulrich Koerner or CS-board member Andreas Gottschling, didn't take off.

7. The Wrong Candidate?

Former central bank governor Philipp Hildebrand was seen as the top candidate – but in autumn, he pulled out and became a candidate for the OECD general secretary's position. The deputy chair of Blackrock remains a prominent and respected name in Switzerland.

Some, however, among the top business elite, don't think that the 57-year-old should be considered, given that he was forced to leave the central bank due to private forex dealings of his then-wife. And Hildebrand also had his own conflict of interest at CS, because his second spouse, Margarita Louis-Dreyfus is a major client of CS.

This conflict of interest is about to evaporate, with Louis-Dreyfus in the process of doing away with her debt at CS. It is not known whether Rohner had toyed with the idea of approaching Hildebrand. It is a fact nevertheless, that the bank failed to present a name at last week's general meeting.

8. The Pandemic Makes It All So Much Harder

It doesn't help to have a pandemic getting in the way of normal business. Travel and contact restrictions may contribute to delays – but it won't do to blame corona for the very drawn-out process of finding a new chairman.

The global financial industry has successfully shifted its key bankers into the home office, so of course, the recruitment must also be possible.

9. Tough Ultimatum to Meet

The committee has added to the pressure by promising to find a new chair by the end of 2020. The last moment available for naming the chosen one is December 15, investors' day. And that is the last moment indeed.

Keeping mum about the succession raises the question of whether the bank will name a last-minute candidate. «Bloomberg» mentioned Jean Pierre Mustier, who it said might be about to leave UniCredit (behind paywall).