The Lucerne cantonal government is backing the planned move of Daniel Salzmann to the board of directors of Luzerner Kantonalbank (LUKB). Although the long-standing CEO is not considered an independent board member because of his previous role, the government sees no reason to question the nomination.

This is according to the government’s response to a parliamentary inquiry by the SP, as reported by the "Luzerner Zeitung". After the leadership change was announced in September, the party had expressed concerns about independence and corporate governance. Since the canton still holds a clear majority in the bank, the vote in April is likely to be a mere formality.

Finma requires a one-year transition period

Salzmann will step down at the end of 2026 after 12 years as CEO. He is already due to be elected to the board of directors at the annual general meeting on April 12, 2027. That leaves just a little over three months between the two roles. In April 2027, Salzmann is set to take over the seat of Martha Scheiber. The current vice chair has been on the board since 2014 and will not stand for re-election.

According to Finma’s circular on corporate governance, former executive board members are not considered independent for two years. However, at least one-third of a bank’s board of directors must be independent.

The Lucerne government believes this requirement continues to be met. All current board members of LUKB would be considered independent. Even with Salzmann, the bank meets the regulatory requirements “above average,” in the government’s view. However, Finma has imposed conditions on the move. During a one-year cooling-off period, Salzmann may neither sit on any board committee nor take over the chair or vice chair.

The government considers these restrictions to be “appropriate.” It sees no risks regarding governance, credibility, independence or the separation of roles. Salzmann has the necessary professionalism to carry out his new role properly.

No tightening of the ownership strategy

The cantonal bank’s ownership strategy is also to remain unchanged. The Canton of Lucerne’s strategy, revised in 2025, does not contain an explicit lockup period for moving from the operational executive management to the board. The government sees no reason to change this. It points out that the ownership strategy did not trigger any corresponding debate when it was discussed in the cantonal parliament.

Family ties are not a problem either

Another point of criticism concerns the designated CEO Stefan Studer, who will take over the bank at the beginning of 2027. His father Fritz Studer was CEO from 1994 to 2003 and then chairman of the board of directors of LUKB from 2005 to 2011.

The government considers this family connection to be “irrelevant.” Together with an international executive search firm, the board conducted a comprehensive selection process. Stefan Studer prevailed on the basis of his professional qualifications and leadership experience. In addition, none of the current board members had worked with Fritz Studer at LUKB.