Credit Suisse said it had hired Prudential head Tidjane Thiam as the first African to lead a global investment bank, with the job of reviving a company reeling from US penalties and under increasing regulatory scrutiny.
Credit Suisse chairman Urs Rohner said long-standing boss Brady Dougan was stepping down as chief executive of the Swiss bank at the end of June and would be replaced by Thiam, a former Ivory Coast government minister who has led the global insurance group since 2009.
“With Tidjane Thiam, a strong and distinguished leader with an impressive track record in the global financial services industry will take the helm of our bank,” Rohner said in a statement.
Rohner said Thiam’s international experience, particularly in wealth and asset management and developing new markets, laid the foundation for his appointment, which was reported overnight by various outlets including Reuters.
Prudential stock had risen 200 per cent in London under Thiam’s watch
Dougan has faced calls to quit since last year when Credit Suisse reached a $2.5 billion settlement with US authorities for helping Americans evade taxes via secret bank accounts. The American is leaving after 25 years at Credit Suisse, eight of those as CEO.
“Now is the right time for the organisation and for me to transition out of the CEO role,” Dougan said in a statement, adding he had “tremendous respect” for his replacement.
Dougan is one of only three global bank CEOs still in the job following the financial crisis, alongside JP Morgan’s Jamie Dimon and Lloyd Blankfein at Goldman Sachs.
Despite failing to overcome a shareholder rebellion when attempting to take over Asia-focused insurer AIA in 2010, French-speaking Thiam has brought value to Prudential’s investors by focusing on Asia as a key driver of profit.
Prudential, Britain’s largest insurer by market value, confirmed Thiam’s departure as it reported a 14 per cent rise in operating profit in 2014.
The firm said it had already assessed a number of external and internal candidates to replace Thiam, who is expected to remain in place until after the company reports its first quarter figures in May.
A successor has been identified and would be announced after the regulatory approval process, the company said.
Prudential stock had risen 200 per cent in London under Thiam’s watch.
Recent troubles aside, Dougan generally has been a well-regarded outsider in the Swiss banking community. He won plaudits from investors for steering Switzerland’s second-largest bank through the post-Lehman Brothers turmoil, cutting riskier trading activities and avoiding getting entangled in US subprime mortgages to the same degree as UBS, which took a state bailout in 2008.
Prudential yesterday reported a 14 per cent rise in operating profits in 2014, sending its shares lower.