Top management appointments for UBS's domestic market look like a show of force against Credit Suisse. But survival of the fittest isn't necessarily the determining factor.

Yesterday's appointments at UBS Switzerland appear to signal Credit Suisse employees still waiting to hear their fate in the integration that virtually all key management functions are going to UBS managers.

There are exceptions. Credit Suisse Switzerland investment banker Jens Haas becomes co-head with Martin Kesselring from UBS and Reto Mueller. The former regional head at Credit Suisse becomes head of risk in its domestic business. That makes the latest round of appointments only marginally more balanced than that at the Group level, where Ulrich Koerner was the only Credit Suisse holdover to making it into the top management of UBS.

Survival of the Fittest

At first glance, it appears that UBS managers generally make the cut where duplications exist, although Credit Suisse managers seem to get the nod when their business has more reach. «Survival of the fittest» applies, and that is indisputably UBS.

UBS disputes there's a plan where Credit Suisse employees are always runners-up. If that were the case, it would contradict the promise made by Group CEO Sergio Ermotti that UBS company would consider all employees whether from UBS or Credit Suisse.

Credit Suisse Stars are Gone

Sabine Keller-Busse had to fill several gaps during the reorganization of the domestic business, with experienced managers having already left. Among them were the former head of private banking Serge Fehr, Anke Bridge-Haux, the ex-head of retail banking, and the long-time head of corporate banking Andreas Gerber.

André Helfenstein is the sole management holdover. As head of Credit Suisse Switzerland, he'll coordinate the integration of the UBS subsidiary until its sunset in 2025.

Revised Savings Target

That suggests there's a far more powerful law at work for integration: velocity. Even if the acquisition's end date is still years away, UBS's timetable is ambitious. Last month it said it would squeeze out an additional $2 billion of savings with a goal of $10 billion by 2027.

The biggest expense item at banks is traditionally personnel, something that's clear to all employees as jobs are being cut at an accelerated pace. In Switzerland, they'll likely go beyond the 3,000 redundancies recently announced.

Relentless Timing

The pace of change leaves UBS management to rely on trusted forces. Ermotti recently said that to minimize implementation risks, he has to choose people familiar with his approach, leaving no time for experimentation.

The 1:3 rule of thumb where a third of an acquired company's staff remains to safeguard operations, is being challenged by observers of the integration.

8,000 First Half Departures

It's possible after announcements made at the beginning of the week, the workforce will face another jolt. According to UBS, around 8,000 employees left in the first half of the year, which should make the cost-cutters task easier.

Developments of recent days indicate that migration is ongoing. Yesterday Swiss private banks Julius Baer and EFG International each welcomed former Credit Suisse employees.