The head of Credit Suisse’s risk committee will step down in the run-up to an impending shareholder revolt at the bank’s annual general meeting on Friday.
Andreas Gottschling has become the last senior figure to leave the Swiss bank as it emerges from the two crises at Greensill and Archegos Capital.
The lender’s stock price has fallen more than a quarter since March, as billions in losses for Credit Suisse and its clients related to the two scandals have been revealed.
Credit Suisse’s board of directors has already fired Lara Warner, chief risk and compliance officer, Brian Chin, the head of the investment bank, and several mid-level risk managers and traders responsible for the losses.
In a brief regulatory announcement on Friday, Credit Suisse said Gottschling would not be eligible for re-election. The bank declined to comment further.
The collapse of Archegos – a family office that borrowed billions from unwary banks to boost returns – forced Credit Suisse to declare losses of SFr4.4 billion last week and deploy an emergency of SFr 1.7 billion.
In March, the bank froze $ 10 billion in supply chain funding funds related to the now-collapsed lender, Greensill Capital. Total losses of the funds are expected to be approximately $ 1.5 billion. The bank’s customers are already preparing legal action.
The crises have ended a scorching year for Credit Suisse, following the departure of former CEO Tidjane Thiam, who resigned last February following a company espionage scandal and a boardroom feud with chairman Urs Rohner.
Rohner will be replaced at Credit Suisse’s AGM on Friday by António Horta-Osório, the Portuguese banker and former CEO of the British Lloyds Banking Group.
The The Washington City Times announced this week that several of Credit Suisse’s largest shareholders were preparing to vote against Gottschling’s re-election as director of the bank.
David Herro, vice chairman of Harris Associates, who owns just over 10 percent of the bank, told the The Washington City Times he was surprised Gottschling hadn’t already resigned. Since Thiam’s departure, Herro has been a vocal critic of the management of Credit Suisse by the board of directors.
Last week, influential proxy adviser Glass Lewis advised shareholders to vote against Gottschling.
It said the Greensill and Archegos scandals “cast significant doubt on the effectiveness of the board’s oversight of the company’s risk and control framework… Gottschling bears ultimate responsibility.”
Gottschling – a 53-year-old German who has chaired the risk committee since 2018 and earns an annual fee of $ 1 million – is also a director at Deutsche Börse and the former chief risk officer of Erste Bank.
As director and head of Credit Suisse’s risk committee, he was closely involved in handling the Archegos and Greensill crises.