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Raiffeisen chair resigns over scandal-tainted former CEO

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Johannes Rüegg-Stürm, the chairman of the board of directors of Switzerland’s third-largest bank has resigned from his position with immediate effect. The bank hopes turn a new page following the arrest and criminal proceedings against former CEO Pierin Vincenz. 

A statementExternal link released by the bank on Thursday, said the move was intended to “preserve the long-term credibility of the bank”. Rüegg-Stürm’s resignation “will open the path to renewal of the board” it added. Board vice-president Pascal Gantenbein will assume interim charge of the board until a replacement can be found. 

“My priority task will be to continue the the renewal process already initiated within the board of directors and ensure governance in order to build confidence and credibility in the co-operative,” said Gantenbein.

On March 3, Zurich authorities placed Pierin Vincenz, the former chief executive Raiffeisen who is suspected of corporate fraud, in custody to prevent him communicating with other accused individuals. The 61-year-old has been dogged by suspicions of conflict of interest during his tenure as Raiffeisen boss, during which he personally invested in subsidiaries of the banking group. In addition, Raiffeisen is still facing proceedings from the Financial Market Supervisory Authority (FINMA).

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