Outside of Geneva, a recent piece of news received little attention – undeservedly so. Just as the renowned Geneva-based private bank Pictet celebrates its 220th anniversary, two former partners have relocated to Italy, the French-speaking daily «Tribune de Genève» recently reported.

According to the paper, Renaud de Planta and, more recently, Bertrand Demole have left Switzerland and taken up residence in Italy – a country that, since 2017, has offered an attractive flat-tax regime: newcomers can pay a lump sum of 200,000 euros annually on all foreign income.

No Denial – But Unanswered Questions

There has been no official denial from either the bankers or the bank itself. Of course, everyone is free to live wherever they choose. And yes, tax considerations are a legitimate factor – even within Switzerland, it’s possible to optimize one’s tax burden through legal means.

Nevertheless, the move by these two prominent (former) private bankers has raised eyebrows. Their profession often invokes Switzerland’s noble values – and thrives on the very favorable conditions this country offers: political stability, high quality of life, and a reliable legal and regulatory framework. These factors are not just incidental; they are central pillars of the business model.

Leading by Example – In Theory

Private bankers are often seen as role models – at home, by international clients, and as a counter-image to the bonus-driven executives of the big banks. And yet, it seems that even some of them now prioritize their wallets over national loyalty.

In Geneva’s financial circles, reactions have ranged from astonishment to disapproval. «As figureheads of the financial sector, they have broken a taboo,» one hears. This criticism is not without substance: Renaud de Planta spent more than a quarter of a century in top executive roles at Pictet – most recently as primus inter pares among the partners.

Still Influential

De Planta remains active on Pictet’s supervisory bodies and also serves on the governing board of the Swiss National Bank (SNB). The business magazine Bilanz named him «Switzerland’s most important banker» in both 2019 and 2022.

Bertrand Demole, too, is a heavyweight of the Pictet dynasty. He is a direct descendant of one of the founding families that shaped the bank over generations. His uncle Jacques de Saussure was a former managing partner, and his father Claude Demole was also a partner at the firm.

A Life for Pictet – Now From Italy

When Bertrand Demole stepped down in 2023, he recounted how he had completed his first internship at Pictet at the age of 13. He worked for the bank for over 22 years and still serves in advisory and oversight roles. «I will never stop being an ambassador for Pictet,» he said at the time – a role he can now fulfill, quite literally, from the Belpaese.

The departure of these two banking luminaries also casts a spotlight on Switzerland itself – and on those locational advantages that seem to have lost some of their appeal. Otherwise, such considerations to leave the country would not even arise.

A Changed Environment

Over the past five to ten years, the political, tax, and regulatory environment in Switzerland has become considerably less attractive for many entrepreneurs. Meanwhile, competing business and financial hubs – Milan, Dubai, Singapore – have been actively improving their conditions. Add to this the near-limitless global mobility of today’s elite, and it becomes clear: people are increasingly «voting with their feet.»

If, on top of that, entrepreneurial wealth or large inheritances and gifts are to be heavily taxed – as the Young Socialists (Juso) propose in their «Initiative for the Future» – then no one should be surprised if the exodus intensifies.

Little Surprise

In fact, several private bankers have told finews.com that they would consider relocating abroad if the Juso initiative passes in the November vote. Given these developments, it comes as little surprise that the traditionally Switzerland-skeptical «Financial Times» already headlines: «Swiss fear UK-like exodus of super-rich over tax poll.»

All of this deserves thoughtful reflection on August 1st – Switzerland’s National Day.