Credit Suisse CEO Ulrich Körner will stay on as part of UBS’s leadership team following the Swiss bank’s takeover of its rival, according to a Tuesday announcement.
Körner will be a member of UBS’s executive board and will be responsible for “ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process,” UBS said.
A leadership shuffle also has Todd Tuckner, currently the CFO and head of business performance and risk management for UBS’s global wealth management arm, taking on the role of group CFO. Tuckner will replace Sarah Youngwood, who is leaving the company upon the close of the deal. The move contradicts a report from last week that returned ex-UBS Americas chief Tom Naratil to the CFO role.
Michelle Bereaux, who most recently was chief operating officer and U.K. country head of UBS’s asset-management business, will be group integration officer. Mike Dargan, meanwhile, will serve as group chief operations and technology officer. And Stefan Seiler will move from his current role as head of human resources to the expanded role of group head of human resources and corporate services.
“This is a pivotal moment for UBS, Credit Suisse and the entire banking industry,” UBS CEO Sergio Ermotti said in a prepared statement. “Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service.”
While the legal close of the transaction is expected in the coming weeks, the integration of the businesses, he said, would take time.
“But adding Credit Suisse to UBS’s highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the wider financial system,” he said.
UBS agreed to buy Credit Suisse for approximately $3.25 billion in March in a government-orchestrated deal.
UBS brought back Ermotti, its former CEO, later that month to take helm of the merger. The UBS-Credit Suisse integration will mark the first time since 2008 that two global systemically important financial institutions have merged.
At the moment, UBS and Credit Suisse are operating independently. Upon legal close of the deal, they’ll begin a phased integration under UBS Group.
The combined company will have five business divisions, seven functions and four regions, as well as the addition of Credit Suisse. Each part of the company will be represented by a group executive board member, and each of them will report to Ermotti.
Ermotti warned staff Tuesday there were “tense and difficult moments ahead,” according to the Financial Times.
“Please remember, your new colleagues are not your competitors,” he said in a memo, according to the publication. “Our rivals are those outside of the combined firm who are actively trying to take advantage of the current situation to poach clients, business and talent.”