Credit Suisse's chief executive Ulrich Körner will become a member of the UBS Group executive board as part of a top management shake-up ahead of the completion of the Swiss bank's planned takeover.
In a statement today (9 May), UBS said Körner will join the board upon transaction close, which the firm said will take place "in the next few weeks". He will be responsible for "ensuring Credit Suisse's operational continuity and client focus".
Sarah Youngwood, current group chief financial officer at UBS, will leave the firm after the acquisition closes and be succeeded by Todd Tuckner, CFO of the bank's global wealth management business.
UBS agrees to buy Credit Suisse for $3.3bn
Iqbal Khan will continue to head the wealth business, Rob Karofsky the investment bank, and Suni Harford asset management, also effective when the transaction closes.
As part of the reshuffle, all existing Credit Suisse executive board members who are also division heads will report to Körner and their respective UBS executive board members, UBS said.
"This is a pivotal moment for UBS, Credit Suisse and the entire banking industry. 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," said Sergio Ermotti, UBS Group CEO.
Ermotti said that while the integration of the businesses and legal entities "will take time", Credit Suisse's integration will benefit its clients, employees, investors, the economies it serves "and the wider financial system".
UBS brings back former CEO following Credit Suisse takeover
The two separate parent businesses, UBS and Credit Suisse, will initially be managed by UBS. Each will serve its clients, deal with counterparties, and establish its own subsidiaries and branches.
UBS said that it will evaluate "all options" for Credit Suisse's Swiss operations, with an announcement on this matter expected in the coming months.
UBS agreed to buy its stricken rival Credit Suisse for $3.3bn on 19 March, following a long weekend of negotiations with the Swiss government and regulators after it became clear that Credit Suisse's market decline was snowballing, putting the country's second biggest lender at risk.
