Julius Baer in direction of administration change after credit score losses | EUROtoday

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A change is prepared for the highest administration of the Swiss financial institution Julius Baer. The group is in truth contemplating the opportunity of changing a number of members of its administration staff, together with CEO Philipp Rickenbacher, as a result of financial institution's involvement within the collapse of Signa's actual property empire.

The alternative after the Signa case

According to the primary rumors relaunched yesterday by worldwide businesses, a proper conclusion has not but been drawn on the way forward for the highest staff, though a call may arrive quickly.

The firm can be evaluating different methods to carry executives accountable and should still resolve to keep up its present lineup because it evaluates how the group has constructed publicity to Signa. However, an answer may contain slicing bonuses: the Swiss newspaper SonntagsZeitung has reported that Julius Baer is exploring the opportunity of slicing variable pay for the highest staff.

The group supervisor has been within the crosshairs because it emerged in November that the corporate had collected a $700 million publicity to entrepreneur Rene Benko's Signa actual property corporations. Regulators' doubts about threat controls and a ranking downgrade have compounded the uncertainty surrounding the financial institution's response to the scandal.

Rickenbacher mentioned in November that the financial institution would evaluation the personal debt enterprise on the core of its enterprise with Benko. The lender then warned that, after setting apart a complete of 82 million francs, of which 70 million associated to Signa's receivables, its full-year revenue would probably decline. The shareholders pay however administration in all probability will get the invoice.