Since Colm Kelleher stepped into his role as chairman of the board of directors at UBS in April, the power structure within the bank has been gradually shifting as recent rumors about Iqbal Khan show.
The newswire report, saying that Iqbal Khan could become the sole head of UBS wealth management - as finews.com also reported – might have been vague but it was not out of step with the talk among Zurich’s financial circles. The idea of Khan stepping up at some point to replace the bank's current CEO Ralph Hamers is not eccentric.
Taking into consideration that many managers have passed the 50-year mark and in the eyes of many employees, are not (or no longer) capable of forging the digital transformation and bringing the bank closer to the next generation, a Khan appointment would address UBS’ age issue.
As retirement looms, senior ranks are reluctant to take on new risks. And anyway, business is running well. What more could one want?
Large following
At 46, Khan belongs to a different generation. He embodies the culture where UBS sees itself heading with its digital wealth management powerhouse. If he delivers, he'll be climbing the CEO ladder sooner rather than later.
The Swiss-Pakistani dual national, who advised banks at EY before joining Credit Suisse in 2013 and moving to UBS in 2019, has the toolset to do so.
Khan already has a large following within the bank, which gives him a great deal of standing internally, which he knows how to use. It is said that he also shows a high level of appreciation for his subordinates. On top of this, Khan's banking expertise is already much wider than that of his boss Hamers.
Steeled on Wall Street
To put it simply, Hamers' banking experience has been limited to Europe and digitization. Although this is not something to be underestimated, it might not be enough to steer the global wealth management leader in the long term. This is apparently chairman Colm Kelleher’s view.
Born in Cork, Ireland, Kelleher is a Wall Street-trained banker who spent 30 years in various top positions at US banking giant Morgan Stanley. He played a key role in getting the institution’s market capitalization to around three times that of UBS.
It is said that Khan’s hands-on attitude is right up his alley, while Khan's proven proficiency in Swiss banking's supreme discipline of wealth management is no doubt also something he values highly.
Leaving His Mark
At 65, Kelleher's chairmanship at UBS is likely to be his last big job career-wise. All the more reason for him to try and make a difference and to leave his mark, for example by (partially) taking over Credit Suisse.
Khan would be better placed than Hamers to help him do so. Were Switzerland’s largest banks to come closer together, Khan would know the merging partner very well from his former role at Switzerland's second-largest lender. He is also no stranger to the Swiss mentality.
