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After a Suicide, Chairman of Zurich Insurance Quits After a Suicide, Chairman of Zurich Insurance Quits
(about 4 hours later)
FRANKFURT — Josef Ackermann, former chief executive of Deutsche Bank and one of Europe’s best-known business leaders, unexpectedly resigned as chairman of Zurich Insurance Group on Thursday after acknowledging that he might be accused of sharing blame for the apparent suicide of the company’s chief financial officer. FRANKFURT — Josef Ackermann, former chief executive of Deutsche Bank and one of Europe’s best-known business leaders, abruptly resigned as chairman of Zurich Insurance Group on Thursday after acknowledging that he might be accused of sharing blame for the apparent suicide of the company’s chief financial officer.
Mr. Ackermann, often a controversial figure during his decade at the top of Deutsche Bank, said in a statement that he was “deeply shocked” by the death Tuesday of Pierre Wauthier, the Zurich chief financial officer, and that any allegation that he shared responsibility was “unfounded.” But Mr. Ackermann said the scandal would make it difficult for him to remain the head of Zurich Insurance. Mr. Ackermann said in a statement that he was “deeply shocked” by the death Monday of Pierre Wauthier, the chief financial officer, and that any allegation by the dead man’s family that he shared responsibility was “unfounded.”
“I have reasons to believe that the family is of the opinion that I should take my share of responsibility, as unfounded as any allegations might be,” Mr. Ackermann said. “As a consequence, I see the possibility of a continued successful board leadership to the benefit of Zurich called into question. To avoid any damage to Zurich’s reputation, I have decided to resign from all my board functions with immediate effect.” Still, Mr. Ackermann’s sudden resignation from the part-time supervisory position came as a surprise, considering that he was a battle-tested banker who had endured numerous controversies during a decade at the top of Deutsche Bank, including a trial on criminal charges and a messy boardroom battle over who would succeed him.
Mr. Wauthier, who had worked at Zurich since 1996 and had been chief financial officer since 2011, was found dead Monday at this home in Zug, Switzerland, and the police said Tuesday that he had apparently committed suicide. He was 53 and had a wife and two children. It was unclear why the family of Mr. Wauthier might have blamed Mr. Ackermann for his death. Spokesmen for Zurich Insurance did not immediately return calls seeking comment. The death of Mr. Wauthier came less than two months after the suicide of another prominent Swiss executive, Carsten Schloter, head of Swisscom, the country’s dominant telecommunications provider. But there was no obvious link between the two deaths other than the high expectations placed on well-paid managers in large companies everywhere. A spokesman for Zurich Insurance, Björn Emde, said there had been no indication that Mr. Wauthier was suffering extraordinary distress.
Tom de Swaan, who had been vice chairman of the board, will serve as acting chairman, the company said. “In a stock-listed company working in a competitive environment worldwide, there is always a certain level of stress,” Mr. Emde said. “We didn’t see anything special. It came as a shock to us. He was a close friend for many of us and a very respected colleague.”
Mr. Ackermann said Thursday that the scandal would make it difficult for him to remain head of the Zurich Insurance board.
“I have reasons to believe that the family is of the opinion that I should take my share of responsibility, as unfounded as any allegations might be,” Mr. Ackermann said in a statement. “As a consequence, I see the possibility of a continued successful board leadership to the benefit of Zurich called into question. To avoid any damage to Zurich’s reputation, I have decided to resign from all my board functions with immediate effect.”
Mr. Wauthier, who had worked at Zurich since 1996 and had been chief financial officer since 2011, was found dead at this home in Zug, Switzerland, apparently a suicide, the police said Tuesday. He was 53, was married and had two children. It was unclear why the family of Mr. Wauthier might have blamed Mr. Ackermann for his death.
Tom de Swaan, a former chief financial officer of the Dutch bank ABN Amro who had been vice chairman of the Zurich Insurance board, will serve as acting chairman, the company said. Martin Senn will remain as chief executive, responsible for daily operations of the company.
Mr. Wauthier’s death and the resignation of Mr. Ackermann come during a difficult period for Zurich Insurance. Second-quarter net profit fell 27 percent to $789 million, the company said this month, blaming natural disasters including tornado damage in Oklahoma and flooding in Europe for the decline.Mr. Wauthier’s death and the resignation of Mr. Ackermann come during a difficult period for Zurich Insurance. Second-quarter net profit fell 27 percent to $789 million, the company said this month, blaming natural disasters including tornado damage in Oklahoma and flooding in Europe for the decline.
Mr. Ackermann, 65, left Deutsche Bank last year after 10 years as chief executive. He led Germany’s largest bank through the financial crisis but was the focus of recurrent controversy. Deutsche Bank continues to deal with numerous lawsuits and official inquiries stemming from the bank’s conduct before the financial crisis began in 2008, while Mr. Ackermann was in charge. Mr. Ackermann, 65, a native of Switzerland, has been one of the country’s most prominent business leaders. He was something of a local boy made good, achieving international stature as the first non-German to lead Deutsche Bank and as a spokesman for the banking industry worldwide. Until last year, he was chairman of the Institute of International Finance, a leading industry group.
During Mr. Ackermann’s tenure, Deutsche Bank faced criticism that it took too much risk and was overly dependent on borrowed money. The bank continues to struggle with a reputation for being thinly capitalized compared with other banks its size. Mr. Ackermann left Deutsche Bank last year after 10 years as chief executive. He led the bank through the financial crisis, avoiding a direct government bailout, but was the focus of recurrent controversy.
In 2004, Mr. Ackermann was acquitted of charges that he and other members of the supervisory board of Mannesmann, a German mobile telecommunications provider, had illegally paid a bonus to the company’s chief executive after it was sold to its British rival Vodafone. After prosecutors successfully appealed for a new trial, Mr. Ackermann agreed to pay a fine and the charges were dismissed.
Before his retirement from Deutsche Bank, Mr. Ackermann carried out a public feud with the supervisory board chairman over who would succeed him. Mr. Ackermann had a tense relationship with Anshu Jain, the head of Deutsche Bank’s investment banking division, who was ultimately chosen to be co-chief executive along with Jürgen Fitschen.
Deutsche Bank continues to deal with numerous lawsuits and official inquiries stemming from the bank’s conduct before the financial crisis began in 2008, while Mr. Ackermann was in charge.
During Mr. Ackermann’s tenure, Deutsche Bank also faced criticism that it took too much risk and was overly dependent on borrowed money. The bank continues to struggle with a reputation for being thinly capitalized compared with other banks its size.