The Business Times

Credit Suisse investors oppose risk chairman's Gottschling re-election

Published Mon, Apr 26, 2021 · 02:19 PM

[ZURICH] Shareholders holding more than 15 per cent of Credit Suisse stock want to oust the board's risk committee chairman, Andreas Gottschling, after investments imploded, the Financial Times reported on Monday, following a similar call by proxy adviser Glass Lewis.

Credit Suisse is raising capital, and has halted share buybacks, cut its dividend and revamped management after the Swiss lender lost at least US$4.7 billion from the collapse of family office Archegos, and after the bank suspended funds linked to insolvent supply chain finance company Greensill.

Now, David Herro, vice-chair of Harris Associates, which says it owns 10.25 per cent of the bank's stock, and the Ethos Foundation, which represents 200 Swiss pension funds that own between 3 and 5 per cent, want Mr Gottschling to be removed at the upcoming shareholders meeting.

Norway's oil fund, which at the end of 2020 owned 3.43 per cent of Credit Suisse stock, also said it would vote against Gottschling's re-election, the FT said.

"Not only should Mr. Gottschling be voted down, but I'm actually surprised in light of current events that he hasn't already resigned," Mr Herro told the newspaper.

Earlier this month, Glass Lewis urged Credit Suisse shareholders to oppose Mr Gottschling's re-election, on grounds that as risk committee chairman he should be held accountable for problems tied to Greensill and Archegos.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

"Our clients are really angry about what has happened," Vincent Kaufmann, chief executive of Ethos, told the Financial Times.

The Zurich-based bank is due to hold its shareholders' meeting on April 30.

In contrast to Glass Lewis, another proxy adviser, ISS, has not recommended investors to oppose Mr Gottschling.

REUTERS

KEYWORDS IN THIS ARTICLE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Banking & Finance

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here