António Horta-Osório resigns as president of Credit Suisse

(Updated at 08.38) He arrived at Credit Suisse’s leadership to revive and to bring about a new corporate culture based on responsibility, but now he in turn has to leave: the Chairman of the Board of Directors (BoD) António Horta-Osório has tendered his resignation, engulfed by the news of unfulfilled quarantines. He is being replaced with immediate effect by the former UBS senior manager Axel Lehmann.

«Credit Suisse today announces that the BoD has appointed Axel Lehmann as its chairman with immediate effect,« a statement released overnight reads. « He replaces António Horta-Osório, who has resigned after an inquiry by the BoD.»

«I apologize that some of my personal actions have caused difficulties for the bank and have affected my ability to represent it internally and externally,« said the manager with both Portuguese and British citizenship, who was quoted in the note. «I have therefore come to the conclusion that my resignation at this time is in the best interest of the bank and its shareholders. I wish my colleagues at Credit Suisse all the best for the future.»

In late December, Reuters news agency had reported, on the basis of internal rumors, that the Board was conducting an investigation of two violations of pandemic quarantine regulations by its president, in both Switzerland and the United Kingdom. A spokesperson for the institution had declined to comment on this news.

But the bank had previously confirmed that in late November Horta-Osório had disregarded the quarantine regulations in place at the time, after returning to Switzerland from Britain. He apologized. A second alleged violation had emerged in December when he had participated in the finals of the Wimbledon tennis tournament in July, i.e. in a moment when arrivals from Europe were subject to a quarantine period. Did the rules - critics asked - only apply to mere mortals, and not to those who travel by private jet?

Horta-Osório was elected chairman of the board of directors in April, a move that was seen as a hopeful factor and a new chapter for an establishment bent by multibillion-dollar losses as a result of the failures of Anglo-Australian Greensill Capital and American Archegos Capital. The executive - who turns 58 in a few days - had previously said he wanted to foster a culture that would strengthen risk management, establish the right incentives and focus on individual accountability.

Last year, the media had also been reporting on his presumed lack of confidence in CEO Thomas Gottstein: some said he wanted to take over the operational management of the company directly. Horta-Osório had later said that this interpretation was incorrect and publicly supported Gottstein.

With Horta-Osório’s departure, he is now succeeded by Axel Lehmann, who was elected as a member of the Board of Directors as of October 2021. Axel Lehmann, the former number one at UBS Switzerland and a former head of risk management at Zurich, was specifically appointed to head the bank’s risk control committee.

Lehmann, 61, is a Swiss citizen and has a doctorate in business administration. He holds appointments at various academic and nonprofit institutions. He is a tenured professor for the University of St. Gallen. He used to be on Helvetia’s board of directors and was expected to assume the chairmanship, but - the insurer reported today - the manager is no longer available.