UBS makes “leadership change”

Luqman Arnold's stay at the top of UBS has been short swissinfo.ch

Switzerland's biggest bank, UBS, has announced a senior management change with the departure of the president of the group's executive board, Luqman Arnold.

British-born Arnold took over the position just seven months ago, becoming the first non-Swiss to hold the position.

His immediate departure reflects a number of differences of opinion, according to the bank. It is not, however, the result of financial, operational or control issues, UBS said.

“We regret the necessity to make this leadership change,” said Marcel Ospel, chairman of the board of directors. “But we didn’t want take any risks and we wanted the group’s peace of mind.”

The board voted unanimously on Sunday to replace Luqman, but the decision won’t herald a change in style. “Under the new leadership, there will be no change in UBS’s strategy, focus, direction or values,” said Ospel.

Surpise decision

The banking group’s decision has come as a surprise to banking analysts, particularly as UBS has not been forthcoming about the reasons behind the change.

“Ospel says that Arnold has done everything one would expect of a good CEO,” said Markus Gisler, head of Moneycab, a financial website. “Arnold’s departure could be due to a number of strategic issues on which they disagree.”

The Briton’s nomination to the top job at Switzerland’s top banking institution had raised a few eyebrows, but nationality was apparently never an issue.

“They must have had other arguments to get rid of Arnold, because he was really appreciated,” Gisler told swissinfo. “When you choose someone for the CEO’s job, you can’t suddenly decide you don’t like him shortly afterwards.”

Other changes afoot

Arnold will be replaced by 44-year-old Swiss banker Peter Wuffli, chief executive officer of UBS Asset Management, while John Fraser will take over Wuffli’s position.

“I think Arnold’s departure is a loss for UBS, but Peter Wuffli has been involved in banking strategy for a number of years,” said Gisler. “He has one disadvantage though, because he does not have a very good reputation for public communication, and Arnold has done an excellent job communicating.”

Other changes are afoot at UBS. John Costas will become CEO of UBS Warburg, working in tandem with current chief executive Markus Granziol.

Warburg’s Private Clients business unit, centred on UBS PaineWebber, will also become independent within UBS group. The move comes just one year after PaineWebber’s merger with Warburg.

swissinfo with agencies