Brady Dougan, chief executive of Credit Suisse, is preparing to step down in light of accusations that bankers at the financial powerhouse helped clients evade U.S. taxes. Tidjane Thiam, who sits at the helm of the British insurance company Prudential plc, will replace him.
Dougan is slated to depart at the end of June after eight years as chief executive. He has been credited for steering the global banking giant through the financial crisis without requesting a government-funded bailout. His fortunes went downhill, however, when regulators turned their attention to Credit Suisse’s unethical business practices from 2002 to 2008 that helped wealthy Americans violate U.S. tax laws through secret bank accounts. Dougan faced pressure to step down after the Zurich-based bank racked up $2.8 billion in fines by U.S authorities.
According to Reuters, Dougan will depart the company as one of the world’s highest-paid bankers with his salary close to $91 million annually.
Thiam, who will transition into Dougan’s role, has led Prudential since 2009. His recruitment comes at a time where the embattled Credit Suisse in dire need of reform as its business continues to evolve in different markets, particularly Asia. While Thiam is relatively new to the banking sector, he is no stranger to dealing with financial regulators. News reports indicate that he spearheaded an attempt to take over the Asian sector of the American International Group, but when the deal failed, Thiam was fined by British watchdogs for not informing the regulators of Prudential’s intent to bid.
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