UBS renews its executive board as it prepares to close the Credit Suisse deal

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UBS said Credit Suisse CEO Ulrich Korner will join its board of directors as part of a shake-up before the Swiss bank completes the takeover of its local rival.

In a series of appointments announced Tuesday, UBS also said that Todd Tucker, its wealth management division’s current chief financial officer, will succeed Sarah Youngwood as chief financial officer.

Youngwood, who joined the bank last year, will leave after the deal closes.

UBS said that all current members of the Executive Board of Credit Suisse who are also heads of departments will report to Körner and members of the Executive Board of UBS.

The new dates will take effect when the deal closes, which is expected within weeks.

The renewal comes as UBS prepares for a costly merger of Credit Suisse, a deal that brings together two important systemwide financial institutions in one of the most significant banking deals since the 2007-2008 financial crisis.

Korner, who was enlisted as CEO of Credit Suisse last year to help revive the bank’s fortunes, previously worked at UBS. UBS said Korner will be “responsible for ensuring Credit Suisse’s continued operation and customer focus”.

The Swiss-German, who has spent 25 years working at both institutions, will support the merger, which will be led by Michele Pirro, a 23-year veteran of UBS.

UBS President Sergio Ermotti said Tuesday that the combined group “will anchor and represent the Swiss model for financing worldwide, one that is capital-light, less risk-dependent and grounded in stability and high-touch service.”

Beatriz Martin Jimenez, UBS UK President and Group Treasurer, will head non-core and legacy affairs – responsible for overseeing parts of the business being wound up – in addition to chair Emea. She will retain her role in the UK, but a successor will be appointed as Group Treasurer in due course.

After the transaction is completed, the two companies will initially operate as separate entities, each serving its own clients and dealing with counterparties.

UBS said Credit Suisse will continue to use governance and risk control frameworks, although UBS will implement new policies to strengthen its oversight of the business.

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