Leonteq CEO Jan Schoch has secured his position at the derivatives specialist as Chairman Pierin Vincenz departed, taking his share of the blame for the difficulties the company encountered last year.
Before yesterday’s publication of half-year results from embattled Leonteq, the options were quite a few: the departure of co-founder and CEO Jan Schoch, a new management committee, a further, much deeper-reaching restructuring, reversal of strategy – you name it.
In reality, the big change didn’t affect the Zurich-based firms business, but came at board level as the fintech managed to return to profit in the first half, following a series of cost cuts.
Leonteq Chairman Pierin Vincenz and Raiffeisen CEO Patrik Gisel will retire from the board as soon as the company has found a replacement.
Abrupt Departure
The departure of Vincenz comes abruptly, only 18 months after his election. But it doesn’t come as a surprise: the chairman had presented the company in the best of lights at an investors’ conference as the signs of the approaching crisis had already started to gather. A short time later, he was forced to announce that Leonteq would post a full-year loss.
Also, Vincenz was a member of the board for the better part of six years and shared responsibility for the strategy of the company – and as such also for mistakes made.
As head of Raiffeisen, Vincenz had initiated the purchase of a 30 percent stake in Leonteq. After last year’s debacle, the relationship between chairman and CEO Schoch reportedly deteriorated to an extent that employees spoke of a power struggle.
Tetchy CEO Response
When Rainer-Marc Frey bought a stake earlier this year, tensions further increased because it was obvious that Frey wouldn’t be a pliant co-owner of the company, given his history as a hedge fund investor.
Now, as Vincenz is history, Schoch seems firmly back in charge. He obviously doesn’t want to be drawn on his relationship to Vincenz and reacted rather tetchily when asked about it by «Finanz und Wirtschaft» (behind paywall): «Why do you ask?»
There was no power struggle, Schoch said, adding that board and executive had exchanged controversial views during the difficult restructuring period. He also said that the relationship had always remained constructive.
Raiffeisen Booster
The Leonteq CEO rejected the interpretation of Gisel’s departure from the board as a sign of Raiffeisen’s loosening of ties to Leonteq, and said that another member of the bank’s executive would be taking Gisel’s seat.
But Gisel hasn’t been shy to say that he wants to reduce his company’s stake in Leonteq. After the drastic fall in the value of the shares in the fintech, Gisel’s plan had to be postponed.
The importance of Raiffeisen as a customer of Leonteq again became apparent from the presentation of the half-year results yesterday. It was the business with the bank that helped Leonteq return to profit, expanding the distribution of products via the Leonteq platform.
Optimistic on Future
Schoch said that Raiffeisen had confirmed its long-term and strategic cooperation with Leonteq as well as its investment in the company: «As such, the bank is a very important partner for us as well.»
Schoch wasn’t to be drawn on the role of Frey in connection with the changes on the board. Schoch, who still owns 7.5 percent of the company, said that Frey’s investment had been a sign of confidence to the market and was welcomed by shareholders and clients alike.
The chief executive is brimming with confidence: «Demand for structured products is growing further, revenues are developing positively and costs will decline.» He also expects to win additional new partners in the next six months.
