The affair surrounding ex-CEO Pierin Vincenz is causing further embarrassment to the former chairman of Raiffeisen Switzerland: Johannes Rueegg-Stuerm is stepping down from his post as a teaching professor at University of St. Gallen.

Johannes Rueegg-Stuerm is withdrawing from teaching at University of St. Gallen (HSG), according to a report in «St. Galler Tagblatt» on Tuesday. This, after he offered his resignation as a professor to the university's management. The step will take place on July 31, 2021.

Juicy Details About Vincenz

Rueegg-Stuerm may, however, remain a professor at the prestigious university and continue to conduct research at a reduced rate. At the beginning of 2020, the scientist had been confirmed as a professor of organizational studies until his retirement in the summer of 2026.

However, Rueegg-Stuerm has since been caught up by his past as chairman of Raiffeisen Switzerland during the era of CEO Pierin Vincenz. In the run-up to the trial against the former Raiffeisen boss, juicy details about Vincenz's expense accounts came to light. Among other things, the bank's chairman at the time is said to have approved expenses for cabaret visits by the Raiffeisen boss without much questioning.

Reprimand From Finma

Cantonal politicians in St. Gallen, therefore, called for significant measures and also discussed the removal of the professor.

Rueegg-Stuerm resigned from Raiffeisen Switzerland in March 2018 only after Vincenz was arrested following charges of unfaithful management. The Swiss banking regulator (Finma) issued a sharp rebuke of corporate governance at the banking group under Rueegg-Stuerm's watch.

Lessons to Be Learnt

This did not prevent the latter from continuing to teach students at the university the basics of corporate organization and management. On the contrary, according to his own account, the professor makes his experience at Raiffeisen part of his teaching.

«It is a decisive advantage of HSG that we also bring practical relevance through personal experience in dealing with entrepreneurial responsibility,» he was quoted as saying when his professorship was confirmed last year.