«As of today, I am working at Credit Suisse in Basel as Head of Premium Clients Northern Switzerland. I am very much looking forward to this task and that I can expand my network within CS,» writes Frédéric Wuethrich, newly appointed head of Premium Clients at Credit Suisse in Northwestern Switzerland and for Central Switzerland, to his Linkedin network.

While that could be just one of many such messages making the rounds on the online platform every day, the current situation at Credit Suisse makes it notable. Here is a private banking veteran taking the plunge at a company that has not only posted losses for three quarters in a row but is also embarking on an austerity program.

More Jobs, More Expenses

In light of this, the wealth manager's latest career stop is interesting. The former Julius Baer banker, who also once headed the Zurich office of Indosuez for several years, was working for UBS in Basel since the summer of 2020, In other words, the Swiss market leader, which has only just hit top form in the past two years.

Credit Suisse confirmed the new hire upon request, and sees this as proof the bank can still attract  «senior talent.»

Wuethrich is not the only one to make the leap from UBS to crisis-ridden arch-rival Credit Suisse. As can be gleaned from the quarterly reports, the group headcount came to 51,410 at the end of last June, 4 percent more than in the same period last year and 1 percent higher than at the end of March. Year-on-year, wages, salaries, and benefits were up 2 percent.

Austerity Program

Rather than experiencing a net exodus, the number of employees has risen steadily over the past five years, even if the company has indeed lost numerous «seniors» over the past months, as reported by finews.com.

Of course, the risk for the newcomers has just increased again. New CEO Ulrich Koerner, has announced plans to reduce the Group's cost base from the current level of around 17 billion to 15.5 billion Swiss francs. Personnel is one of the biggest items on the bill, and the Anglo-Saxon media have already dubbed Koerner «Uli the Knife.»

Saving for a Rainy Day

Banking is essentially the art of weighing up risks, and bankers certainly can be expected to assess the risk-to-reward scenarios for their careers.

Credit Suisse, despite its predicament, is quite willing to lure talent with hard cash and keep it with the company. For example, «Bloomberg» (behind paywall) reported in referencing the bank's quarterly statement it set aside almost 300 million francs ($316 million) in deferred compensation last June.

That coupled with recent chatter around retention bonuses in recent days, is showing some bankers are weighing risks and rewards and are taking the plunge.