The financial market also has a role to play in society, says the new CEO of Acrevis, Michael Steiner. He’s unhappy about the wrong incentives for managers and excessive bonus payments.
Stephan Weigelt today will hand over his duties as CEO of Acrevis to his successor, Michael Steiner. The St. Gallen-based regional bank had announced the handover in the summer of 2017.
Steiner joined Acrevis as head of private banking in August 2016. He now wants to continue the good work of his predecessor, he told «St. Galler Tagblatt» in an interview on Friday. He also used the platform to criticize the banking industry and to demand change.
Wrong Incentives
«In banking, we need a change of paradigm,» he said, adding that the companies also had an important role to play in society at large. Apart from an advisory that was close to customers, it also meant that companies had to refrain from incentives that placed excessive risks with society.
The economist indicated that there was a need to maintain a healthy attitude in respect to how banks granted credits. In the past, the balance sometimes had tipped in favor of wrong incentives.
Steiner also disproves of «exorbitant bonuses» and the promotion of own products. Like many other small banks, Acrevis is actively pursuing a different strategy than the large banks.
Private Banking Expansion
Acrevis Bank is the result of a 2011 merger of Bank CA St. Gallen and Swissregiobank. It has about 200 members of staff and eight branches in Eastern Switzerland.
The company has expanded its private banking business over the past years to reduce its dependence on interest income. The investment has paid off and revenue from services and commission increased more than 7 percent to 20 million francs last year, while interest income dropped 2 percent to 40 million.
