People Moves

Credit Suisse To Reshuffle Board

Tom Burroughes, Group Editor, London, 26 March 2020

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Switzerland's second-largest bank is proposing a new non-executive director to join its board, with another stepping down after a four-year period in the post.

Credit Suisse has proposed to elect Richard Meddings as a new non-executive member of its board when shareholders meet on 30 April, while chairman Urs Rohner and other board members will also stand for re-election.

The Swiss bank, in issuing its annual report yesterday, also said that after a four-year stint on the board, Alexander Gut will not stand for re-election at the AGM.

Meddings is chairman of the UK bank TSB Bank plc, and expected to succeed John Tiner at Credit Suisse as chair of the audit committee, subject to his election at the AGM and formal appointment at Credit Suisse, it said.

As previously announced, Credit Suisse said its board will propose to the shareholders a cash distribution of SFr0.2776 per share for the financial year 2019. This matches the bank’s intention to boost the ordinary dividend per share by at least 5 per cent. Half of the distribution will be paid out of capital contribution reserves, free of Swiss withholding tax and not subject to income tax for Swiss resident individuals, and the other half will be paid out of retained earnings, net of 35 per cent Swiss withholding tax.

Switzerland’s second-largest bank has been through a turbulent period, with Tidjane Thiam, hired as chief executive four years ago, resigning a month ago to be replaced by Thomas Gottstein. Thiam came under pressure after a spying scandal in Switzerland in which a former top wealth management figure, who had left to join rival UBS, was spied upon. Thiam was absolved of any blame but the episode raised questions about Credit Suisse’s corporate culture. Thiam had left the bank in stronger financial shape, having executed a major restructuring.

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