Signs are increasingly pointing to an internal hire, research by finews.com indicates. The nomination for the next leader of the Zurich-based investment house is expected in October.

While Zeno Staub intensifies his campaign to be elected to the Lower House of the Swiss Parliament, the question of who will succeed him as CEO looks increasingly fraught, a number of headhunting firms indicate. What is particularly disconcerting is the impression that the job appears to be too much for the board of directors.

«One of the most important tasks for the board of directors and, particularly its chairman, is to always have a backup CEO candidate in the wings», a headhunter based in Zurich maintains, given the business could potentially be negatively impacted the longer the leadership transition takes.

2030 Strategy

Vontobel vehemently refutes that when asked by finews.com, saying: «We are not currently leading a strategy discussion about the future. Our strategy, based on the principles of the «Lighthouse» strategy for 2030 and agreed with the family, is firmly in place and only needs further refinement when necessary.»

Apparently, everything is on schedule and Staub's succession should be decided by the end of this year. Internally, the motto is: «Underpromise, overdeliver». Given that, most industry experts are now reckoning with an appointment in October.

A Restructuring Case?

A number of executive search experts based in Zurich see the current situation differently. «Vontobel has become a restructuring case in the meantime», a recruiter indicates, pointing to the institute's sluggish performance in recent quarters.

That is important to recognize, not least given that it also sharpens the profile required of any future head of the business. He or she will have to turn everything up and down, save costs where necessary, and develop a consistent strategy that soon returns Vontobel to success. That, at least, is the current take of many headhunters. According to them, it is the only way that the share price will be able to recover, particularly given that it has fallen to 52 francs from 86 in the past two years.

External Rejections

But restructuring appointments frequently come from outside as they can often provide fresh inputs on standing processes and business models and are in a position to pose highly critical questions that internal executives can't. That appears to be the exact case right now, as research from finews.com shows.

According to some industry experts, a number of external candidates have been rejected in recent days and it appears increasingly likely that the appointment will be made internally.

Weak Performers

There has been a certain amount of reporting in the media about the various candidates. Still, no new candidates have seemingly come into the fray to join them in the meantime. Currently, there are some indications that Christel Rendu de Lint could be appointed. She heads investments and is responsible for the asset management segment, the exact area that the former bank wants to focus on.

The only thing is that the performance of that business has been extremely disappointing, and Rendu de Lint has little to show for it. In fact, the situation appears to be the complete opposite with her seen under increasing pressure. A number of observers also indicate that she does not have the stature to be able to step out of Staub's shadow and legacy.

Strong Female Presence

At the same time, there is pressure to appoint a woman as the operational head, a view that is echoed by the board of directors. Maja Baumann, and Bjorn Wettergren, the two direct representatives of the Vontobel family, have at different times indicated a view for having strong female representation.

Given that, the other internal candidates are seen as having a difficult time of it, among them finance and risk management head Thomas Heinzl, wealth management leader Georg Schubiger or Marko Roeder, head of the asset management client unit. Still, things could look different for them very soon, particularly if taking the «Christel Rendu de Lint» path doesn't appease investors.

At the end of the day, bringing them back on board is something that should be a clear imperative for Vontobel, and a way to get its share price back on track.