|
 Investors in Switzerland's second biggest bank will vote on raising
around 6 billion Swiss francs ($5.9 billion) in capital, part of
Thiam's restructure which aims to focus more on wealth management in
emerging markets, cut investment banking and bulk up its balance
sheet.
There are no signs that shareholders will reject the cash call. But
it will be an important chance for Thiam to build bridges with Swiss
retail investors who took issue with Dougan's large pay packets and
failure to learn German in eight years as CEO.
In a sharp exchange at last year's annual meeting one investor asked
Dougan to step down, saying: "A fish rots from the head down. In
this case, the head is Brady Dougan."
Since his appointment, former insurance executive and Ivory Coast
government minister Thiam has stressed the importance of Switzerland
to Credit Suisse and addressed the Swiss media in both German and
French.
Bilanz magazine in June dubbed Thiam the "Obama of Credit Suisse"
because of the high hopes surrounding his appointment.
Some recent coverage has been less complimentary, particularly a
Finanz und Wirtschaft newspaper report that he charters helicopters
in Switzerland, travels first class with his staff and stays in
presidential suites.
Credit Suisse immediately said the helicopter story was not true and
that Thiam adheres to the bank's policies on expenses.
WAITING GAME
The meeting takes place with the market still waiting to see whether
Thiam can make good on his strategy.
Credit Suisse's decision to emphasize wealth management and grow in
Asia mirrors moves by local rival UBS.
It joins rivals including Barclays and Deutsche Bank as well as UBS
in scaling back investment banking as tougher regulations squeeze
profitability.
[to top of second column] |
However, shares have fallen around 5 percent since Thiam outlined
his plans in October. UBS, Switzerland's biggest bank, has seen its
share price rise roughly 1 percent over the same period.
The recent decline contrasts with the reaction in March when the
decision to hire Thiam sent Credit Suisse's stock soaring.
Part of the recent move is because of the planned share increase,
which would dilute the value of existing shares.
But some investors are wary of backing a strategy which Thiam said
may not start bearing fruit until 2017.
"I don't want to sit on a story that is not going to be delivered in
the first year, but only in the third," said Guy de Blonay, manager
of the Jupiter Global Financials fund.
"So I might look elsewhere before coming back to a story that is
perhaps more on track than just wishful thinking."($1 = 1.0058 Swiss
francs)
(Additional reporting by Oliver Hirt; Editing by Keith Weir)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
