“This is a sad day for you and for us too,” said the chairman of the board of directors to the shareholders of the establishment born more than a century and a half ago.
“We are at a stage that no one had expected in this way,” added Axel Lehmann. “I can measure the bitterness, the anger and the shock of all those who are disappointed and affected by the turn of events”.
“We ran out of time”
Expressing the will and the energy implemented to put the second bank of Switzerland on the right track, Axel Lehmann regretted a “fatal week” of March which ruined all his plans. “I’m very sorry for that. I apologize for not being able to undo the loss of confidence accumulated over the years and for disappointing you.”
Like CEO Ulrich Körner, Axel Lehmann noted that he had run out of time, when the bank needed a complete strategic review and a cultural transformation. “You have to believe me: we fought with all our might” to raise the bar, he hammered.
Ulrich Körner, for his part, assured that the merger with UBS was the only viable option. A collapse of Credit Suisse “would have been a catastrophe for Switzerland and the world”.
>> The moment Axel Lehmann apologizes to shareholders:
No dividend or special bonus
Axel Lehmann also clarified that due to the takeover of Credit Suisse by the State, the payment of dividends was prohibited. The vote on a special bonus for the board and management was also removed from the agenda.
As for the future of the bank, Axel Lehmann explains: “Until the completion of the merger, Credit Suisse is an independent company which must carry out its activities as usual. We of course hope that the merger can be completed as soon as possible. However, the duration of the application ultimately depends on various official approvals, so we cannot predict exactly how long this transition phase will last.”
Axel Lehmann and the board of directors re-elected
Despite a long list of criticisms, Credit Suisse shareholders have nevertheless renewed their confidence in the chairman of the board of directors. Axel Lehmann was narrowly re-elected, with 55.67% of the vote.
Five of the twelve board members did not stand for re-election. The other seven retain their positions. But the scores obtained following the votes did not exceed 56%, a historically low result.
For the remainder of the votes, shareholders declined (3.6% for; 46% once morest; 50% abstaining) a request for a special investigation filed by a shareholder.
Credit Suisse’s climate strategy, presented in the 2022 report of the task force on climate-related financial disclosures, was accepted by 53% of the votes. Several climate advocates had recommended refusing it, like climate activists demonstrating at the entrance to the Hallenstadion on Tuesday morning (read box)considering it too unambitious.
The vote on the remuneration of the Board of Directors narrowly obtained (50.06% of the votes) the necessary majority. Those of the management are however refused.
Vote impossible on the change of statutes
The General Meeting was unable to vote on an amendment to the articles of association aimed at modifying the share capital and introducing a capital fluctuation margin. Indeed, many shareholders refused to vote and the required attendance quorum, at least 50% of the share capital, was not reached. There was therefore no vote on this point, which was on the agenda, a snub for Credit Suisse.
A man wears a suit that reads ‘Liquidate Criminal Suisse + Banksters Assets’ as Swiss bank Chairman Credit Suisse Axel P. Lehmann speaks during the Swiss banking group’s annual shareholders’ meeting in Zurich. [Michael Buholzer – Keystone]
In detail, just under 1.6 billion voting rights were represented at this meeting, or around 40% of the more than 4 billion votes in total. About 13 million votes go to the 1748 shareholders present at the Hallenstadium. Twenty participants waited their turn to express their anger.
Parade of sad and angry shareholders
Among them, Vincent Kaufmann, the director of the Ethos Foundation, which represents many large pension funds as well as small shareholders, castigated “the greed and incompetence of the leaders”, as well as “remuneration reaching” summits unimaginable”. He recalled that the financial damage suffered by the shareholders was irreversible”.
>> Vincent Kaufmann’s interview in Forum:
Recalling that he had always voted once morest excessive remuneration, he criticized the bank’s risk-taking and demanded compensation. Unhappy with the exchange of Credit Suisse shares for UBS shares, he called on the board of directors to “remunerate shareholders as much as possible”, before expressing his hope that the company would shed light on the whole story.
A French-speaking shareholder of the bank expressed “a very strong feeling of sadness in the face of a huge mess that was avoidable”. Setbacks that Credit Suisse has mismanaged for 15 years. “Managers have crossed the red line”, learning nothing from the past
Another shareholder denounced the attitude of the largest holders of securities of the bank, they have only rarely sanctioned the leaders of Credit Suisse.
Nicolas Goetschmann, who represents the association of shareholders of Actares (concerned with sustainable governance), recalled the many costly scandals at Credit Suisse in recent years: Greensill, Archegos, Mozambique. “The takeover by UBS means a loss of more than half of the share, at the expense of the shareholders. We count on a responsible takeover by UBS, more stability and confidence on the part of the new CEO Sergio Ermotti”, has he declared.
Show more
Bond investors cheated
Other proposals that were to be on the agenda of the general meeting have been withdrawn, such as the management plan, generally considered as an indicator of confidence in management.
The emergency takeover of Credit Suisse also resulted in the devaluation to nil of $17 billion of “Additional Tier 1” (AT1) debt, causing a stir among bond investors usually protected in the event of bankruptcy or bailout. emergency.
A group of investors in Credit Suisse’s AT1 debt has hired law firm Quinn Emanuel Urquhart & Sullivan to seek compensation.
>> The details of Nicolas Rossé in the 12:45:
Feriel Mestiri with agencies
