Page 2 of 2

Others say that there’s a problem of corporate culture where performance isn’t rewarded adequately, leaving top members of staff frustrated. As respected managers moved elsewhere, the atmosphere soured further, making more departures likely. Selling funds in Switzerland is very much a networking business, making experienced professionals much sought after.

Blackrock seems to have hired younger, less experienced people to fill the gaps, one observer said. This may have affected the company’s business and added to the frustration among staff.

U.S. Corporate Culture

Blackrock Switzerland said that these observations made mere allegations. The turnover among Swiss staff was clearly lower than at its rivals. Blackrock specialist staff were in great demand, which went to explain the departures. Blackrock also emphasized that the company retained a U.S.-style performance culture that helped talented staff: Reda Zebdi and Maria Sala both had been promoted at the iShares unit.

Blackrock aims to further expand the iShares business in Switzerland and is looking for a sales person. The company objected to the observation that it mainly hired younger staff, with the appointment of UBS veteran Ed Gordon as new head of iShares Switzerland given as an example.

Tough Times for the Boss

If critics are to be believed though, the task for the new crew including Gordon looks challenging. The managers will need to both rekindle growth and also boost morale.

Staub-Bisang, the country chief, is doing a good job though, according to sources. It remains to be seen whether the sustainability expert is making herself sufficiently heard at the headquarters in New York. There, the times are challenging as the letter published on Tuesday showed.