Profiles: Courageous Associations 😬
What Marcel Rohner, Antonio Horta-Osorio and Sabrina Soussan have in common...
Dear Insider,
John F. Kennedy once penned an inspiring book with the title “Profiles in Courage.” It was an insightful volume, offering perspectives on some of the lesser-known figures in American history who displayed great courage in varied, difficult circumstances.
Kennedy himself was, of course, an exemplary example of courage and a decorated war veteran - right up until his tragic death in November 1963. Before that sad day, he bound himself to
Switzerland has its heroes as well - men (and fortunately, more and more women) who stand out against the backdrop of history, providing inspiration even to today’s generations. Alfred Escher, Carla Del Ponte, Roger Federer to name just a few.
Then there are other courageous figures - less awe-inspiring and more sympathetic, meaning that they inspire more sympathy and less awe, whatever their former positions may have been.
This week we profile three such persons in a special edition of The Swiss Insider. Two of them hail from the banking world. Here, feelings of sympathy may be mixed.
One, Sabrina Soussan, comes from beyond the world of finance but also has displayed a singular amount of courage in taking on a new position.
In fact, all three figures in this week’s publication are taking on new roles. In doing so, they “associate” themselves with brands that are more (or less) valued than the expertise that they bring to the table.
Their step forward, into the limelight - or glaring spotlight, however you prefer to describe it - provides a window into what it means to be a (tragic) hero in Swiss business.
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☄️ Cometh the man - Marcel Rohner
It was - and is - an unenviable task.
Marcel Rohner, the University of Zürich-educated banker, was entrusted with the reins of UBS, in the middle of the big bank’s major meltdown in July of 2007.
During the two years that he ran Switzerland’s largest bank, he oversaw hundreds of millions in write-offs as UBS reeled from bad bets on mortgage-backed securities and other risky investments. And a mere two weeks after being named Group CEO, the 2008 financial crisis exploded - for real.
And yet he did not regret the move - not one bit.
Speaking to Swiss business publication Handelszeitung in 2008, Rohner reaffirmed a dogged commitment to his firm and desire to do his best, even in difficult circumstances. He also confirmed his belief in the strength of UBS’s position. Less than two years later, however, he would depart.
In the meantime, he would be accused of “staggering ignorance” with regards to the shocking Libor-rigging scandal.
New association(s)
After departing UBS, Rohner took up a position as a member of the Board at UBP. And now, much to the general surprise of the Swiss banking community, he has been named the new president of the Swiss Banking Association.
As noted by Swiss daily NZZ, it is not often that a “fallen banker” is given a second chance. And yet with an increasingly challenged banking sector, which according to statistics accounts for more than 5% of GDP, the financial sector has clearly chosen to bring in one of “its own” in order to represent them at the highest level.
Can he make a difference?
Few will see Rohner as a white knight appearing with magical powers to reverse the relative decline of Swiss banking. But heroes do come in strange forms sometimes.
One challenge - and perhaps one strength of the SBA’s new top man - is his close connections to financial institutions of all sizes. While he himself is closely associated with UBS, and more recently with classic private banking at UBP, the financial sector in Switzerland remains quite fragmented. Universal banks, investment banks, private and boutique firms all crowd themselves under the umbrella of the SBA.
Ironically, this will make Rohner’s job even more difficult. As an experienced banker, and a Swiss one at that, he will need to keep “everyone happy, all of the time” which will be an extremely hard task. His association with past scandals and misbehaviour at UBS will ultimately hinder his effectiveness and his credibility with those beyond the realm of Swiss banking’s inner circle.
Rohner’s CV hardly inspires visions of great courage - a trait which would seem to be needed in these uncertain times.
His close ties to the industry may not make courage particularly necessary.
🔑 Key to the kingdom - Sabrina Soussan
Switzerland prides itself on being secure.
And of course, security takes many forms. One company that has made Swiss security its focus for over 150 years is Dormakaba.
And Dormakaba has a new CEO - Sabrina Soussan. The French/German citizen (with a degree in aeronautical engineering) has taken over one of the industry leaders in security technology at a critical time in the industry’s history.
Just over a year ago, it was revealed that a previously respected company Crypto AG - a maker of encrypted communications devices - was actually a tool of foreign intelligence agencies, German and US to be precise.
To be clear, Dormakaba is not directly linked to encrypted devices the likes of which Crypto AG produced and exported to governments and companies around the world. But it place in the ecosystem of secure Swiss technology is certainly affected.
And here enters Sabrina Soussan.
The company’s new CEO brings a new face and new talents to the venerable Swiss firm. After years working in mobility and various technology initiatives at Siemens, Soussan will now take over Dormakaba and attempt to keep it relevant in the rapidly changing world of international business.
Her firm is one example of a long-established company in an industry verticle where Switzerland has long been a leader. And yet…
How will new trends affect the physical security business? Will office workers return to their desks, will warehouses and supply chains become even more valuable in times of production uncertainty?
Perhaps even more importantly, will a fresh face and a female CEO help prepare a traditional firm for the many (changing) challenges of business that lie ahead?
Sabrina Soussan’s association with Siemens, a world-wide leader in technology, systems and innovation, may be a strong indication of Dormakaba’s future ambitions. But will she have the courage to take her new firm into the next phase of growth and expansion?
⏳ Cometh the hour - Antonio Harta-Osório
Antonio Harta-Osório is a religious man.
As much became clear, when the new chairman of Credit Suiss sat down recently with the Financial Times and discussed his past - and future - career. A firm belief in his mission, his goal and his own saving power helped pull the Portugese, former CEO of Lloyds Banking Group, through the “valley of the shadow of death.”
Harta-Osório has seen a lot in his career.
After stints at Citibank, Goldman Sachs and Santander, he landed the top job (in 2011) at Lloyds while the bitter aftermath of the 2008 financial crisis was still fresh.
As he explained to the FT, he has to bear the burden of the bank’s near collapse all by himself - before eventually pulling it back from the brink. After exiting government ownership in 2013/14, Lloyds was able to pay its largest-ever share dividend in 2017 - to the tune of GBP 2.7 billion.
Now he faces an even bigger task - pulling Credit Suisse back from the abyss.
The hour is at hand
The scandals that have rocked Credit Suisse are enough to make any high-flying banking manager lose his faith. Lapses in risk management, hubris from investment bankers and angered clients clammoring for retribution after sinking billions into shaky products - all of it falls upon Harta-Osório’s shoulders now.
The Porgugese wonder man is certainly aware of the challenge that faces him. After huge losses incured through poor risk management, he faces one of the toughest challenges of his professional life.
Which begs the question - why would a successful London-based banker choose to dive into a crisis such as that of Credit Suisse?
Associating himself with a brand on the downward (slippery) slope puts Harta-Osório in a tough position. All his accomplishments at Lloyds will be forgotten if he is not able to pull CS back from the brink.
And yet the man displays exemplary courage in the face of overwhelming odds. Putting his (turnaround) reputation on the line with Credit Suisse clearly indicatest that he is ready for the challenge.
Whether he can produce a miracle remains to be seen. If he can, he will be a true hero…