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Tidjane Thiam, former CEO of Credit Suisse, allegedly ordered the surveillance of his girlfriend's ex-husband shortly after taking office in 2016, a plan that remained hidden until the 2019 exposure of another spying incident. The ongoing trial in Washington, where the ex-husband claims $15 million in damages, reveals a troubling culture of espionage within the bank, suggesting that such practices may have been prevalent even before Thiam's tenure. UBS, as the legal successor, now faces the fallout from these revelations, tarnishing its reputation in the critical U.S. financial market.
Thomas Gottstein's refusal to support a merger between UBS and Credit Suisse (CS) in 2020 marked the beginning of CS's decline, as he believed he could independently steer the bank back to stability. Despite significant losses from the Greensill and Archegos scandals, he remained CEO until 2022, while Urs Rohner, the Chairman, failed to hold him accountable. Ultimately, UBS acquired CS for a mere $3 billion amid the fallout from the Silicon Valley banking crisis, highlighting the missteps of both Gottstein and Rohner in navigating the bank's challenges.
Credit Suisse (CS) faced severe liquidity issues during the Covid crisis, being the only global systemically important bank unable to meet its requirements, which led to failed merger talks with UBS in 2020. UBS later acquired CS in 2023, benefiting from the latter's weakened state and government guarantees, avoiding the risks and costs associated with a merger three years earlier. UBS's management had long viewed CS as doomed, particularly after its 2015 strategy under Tidjane Thiam, which was seen as a dead end.
Switzerland stands out as the highest-paying country for CEOs, with compensation packages that far exceed those in the USA and UK. The top earners, Severin Schwan of Roche and Juan Carlos Torres Carretero of Avolta, each earn 5.7 million francs, attracting corporate leaders from across Europe.
Severin Schwan's leadership at Roche faces scrutiny amid declining stock prices and research setbacks, contrasting with competitors like Novo Nordisk and Eli Lilly. While Schwan's cautious approach has fostered stability, analysts question the pipeline's potential for future blockbuster drugs, leaving Roche's growth prospects uncertain.
Roche, under CEO Thomas Schinecker, is streamlining its operations by focusing on five key therapeutic areas: neurology, oncology, eye diseases, immunology, and cardiovascular/metabolic diseases. The company is prioritizing promising drugs like CT-388, an injection aimed at significant weight loss, while addressing internal inefficiencies and aiming for faster clinical trials. Despite setbacks, Roche is determined to enhance its drug pipeline and maintain competitive growth in the pharmaceutical market.
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