Zurich are mounring the death of CFO Pierre Wauthier, and whilst no further details have been disclosed out of respect for the family, allegations have surfaced suggesting that Zurich’s chairman, Josef Ackermann, has been implicated in Wauthier’s suicide.
Zurich Insurance have confirmed the existence of a suicide note left by Wauthier, which may implicate Ackermann in his death. Wauthier was found dead at his home in a Zurich suburb on Monday 26th September. On Tuesday police said he appeared to have taken his own life.
Wauthier’s family directed allegations that Ackermann had put Wauthier under intense pressure to perform. After these reports surfaced Ackermann quit the firm on Thursday, releasing a brief statement that said: “The unexpected death of Pierre Wauthier has deeply shocked me. 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.”
“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.”
In a conference call intended to reassure investors, acting chairman Tom de Swaan confirmed that the firm are investigating whether Wauthier was put under excessive pressure prior to his suicide. De Swaan said: “The board sees it as its prime responsibility to look into the question as to whether there was undue pressure placed on our CFO.”
He continued: “From my own personal perspective I am not aware of any behaviour that would be inappropriate in a board setting. The Zurich management team has the board's full support and we fully recognise that the recent developments have been extremely unsettling and our focus is on ensuring the continued stability of the company.”
Ackermann, 65, took over as chairman of Zurich in March of last year after a decade leading Duetsche Bank through the financial crisis. Results had so far failed to impress under the new chairman though, with the most recent quarter showing an 18% drop in profits.
Chief executive of Zurich, Martin Senn, insisted that even though results were not ideal, the company is still profitable and there were no financial issues which could have triggered the suicide of Wauthier.
Senn said: “There is no link between this news and Zurich’s business performance. The results were somewhat mixed but we continue to be profitable. We have a strong and resilient balance sheet.”
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