The Swiss derivatives boutique managed a remarkable turnaround last year. This year should be its breakout year – if it weren't putting the brakes on its own development.
Leonteq is back to profits after dropping into loss-making territory last year, as finews.com reported. The fledgling firm's turnaround efforts included slashing spending, including by cutting jobs, launching new products, and clinching partnerships with notable finance firms.
Along the way, Leonteq digested the acrimonious departure of its Chief Executive and co-founder, Jan Schoch, as well as Chairman Pierin Vincenz, who were capably replaced by fresh blood (Marco Amato (pictured below) as stand-in CEO, Christopher Chambers as Chairman).
Investors Displeased
For its considerable efforts, Leonteq should be lifting off, but the firm is trammelled: its stock price lost almost 2.7 percent on Thursday, despite the successful turnaround. Why?
Leonteq certainly doesn't command the same attention from investors as last year, when heavyweight investor Rainer-Marc Frey took a more than 7 percent stake in the firm, then at risk of imploding. The stock's surge more than doubling in value last year to roughly 70 Swiss francs now removes the attraction for investors – even if Leonteq's prospects to bolster its profits are intact.
Stand-In Leadership
Amato's prolonged status as stand-in next to his regular job as finance chief is irritating. Leonteq's succession committee is still casting around for the right CEO, a process Amato is a candidate for, but by no means certain to clinch, finews.com can report.
The situation is like a muzzle for Amato: «You will undertand that I cannot give you any more information,» he said. Asked whether he is willing to take on the CEO job permanently, he said vaguely «I am committed to Leonteq and intend to stay as part of the leadership going on.»
Executive Glamor?
Amato, a 36-year-old Swiss-Italian former consultant, goes into the CEO search with considerable achievements under his belt (click here for a finews.com interview with him last month). Leonteq's board is believed to be holding out to see if it can find a more seasoned, charismatic and presumably more visionary CEO – someone who can reignite some of the glamor that surrounded dynamic ex-CEO Schoch.
Leonteq has given itself ample time, but paradoxically can ill-afford the embarrassment of not having a permanent successor by its shareholder meeting on March 28. Thus, it is entirely possible that Leonteq presents an outsider in coming weeks, or cements Amato's status. Until then, the firm is thwarted in its own ambitions.