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Credit Suisse’s top management was blindsided by the exit of private banker Iqbal Khan. The Swiss banker’s exit is the culmination of a months-long standoff with CEO Tidjane Thiam.

The Swiss bank sent shockwaves through its ranks as well as the wider wealth management industry with the disclosure after U.S. securities markets shut on Monday that top private banker Iqbal Khan is leaving, with immediate effect. Credit Suisse's promotion of  Philipp Wehle, currently the wealth unit's finance chief, is meant to signal continuity for the division, one person familiar with the move said.

The 43-year-old former consultant flourished in his six years at Credit Suisse’s private bank, the six-largest in the world by assets according to an annual ranking by Scorpio Partnership. The career surge led him to a high-stakes bust-up with CEO Tidjane Thiam, several sources familiar with the matter told finews.com.

«Let’s be clear: at that level, there is no cruise control. It’s attack mode only,» said one of the people. The brinkmanship between Thiam and Khan – both strong alpha personalities – was an open secret. However, Credit Suisse’s wider top management wasn’t informed Khan was on his way out until Monday, another person familiar with the matter said.

Career Plan?

Publicly, Thiam lauded and thanked Khan – as well as himself for spotting the former EY consultant’s talent. For his part, Khan acknowledged the career opportunities that Credit Suisse has afforded him. Behind the scenes, the picture is more nuanced, two people said.

Earlier this year, Khan signaled to the CEO that he was ready to take the next step in his career. Specifically, he wanted to hear from Thiam what the Swiss bank had in mind for him – as finews.com reported, Khan was the natural heir for Credit Suisse’s CEO job.

Dropped out of View

Thiam, a 56-year-old French-Ivorian banker and former McKinsey consultant, bristled at this. The wealth unit overseen by Khan had already emerged as the standout in CEO Thiam's grueling three-year revamp of Credit Suisse. Thiam, several people familiar with the relationship between the two, didn’t take kindly to Khan getting as much or more credit for Credit Suisse’s turnaround.