Chairman of Zurich Insurance , Josef Ackerman ( that name should be familiar ) quits - this follows the suicide of its CFO this week ! What the hell is going on ?

http://www.dailymail.co.uk/news/article-2406413/Zurich-Insurance-forced-admit-finance-director-took-life-left-suicide-note-naming-chairman-widow-blames-husbands-death.html

Zurich Insurance confirmed today that former finance director Pierre Wauthier left a suicide note naming the firm's then-chairman Josef Ackermann.

The Swiss company said today that the letter documents the relationship between the pair but said that it would be 'inappropriate' to elaborate further.

Mr Ackermann quit as chairman yesterday after saying he had come under pressure to take 'my share of responsibility' following the apparent suicide of Mr Wauthier.

Chief Financial Officer Mr Wauthier, who had worked for the company for 17 years and had joint British and French citizenship, was found dead at his home on Monday.

Shock announcement: Zurich Insurance chairman Josef Ackermann resigned yesterday following the apparent suicide of finance director Pierre Wauthier

Police are not looking for any other parties in connection with the death.

A spokesman for Zurich told MailOnline: 'We were informed that such a letter exists and we are aware of its content. 

'It is correct that it relates to the relationship between Pierre Wauthier and Josef Ackermann but it would be inappropriate for us to further elaborate on it. 

'It is a very difficult situation, especially for the families and friends of Pierre Wauthier. 

 

'We all need to respect their privacy during this difficult time and we deeply regret his passing, which was completely unexpected.'

The latest development comes as Mr Wauthier's widow Fabienne criticised Mr Ackermann's management style.

According to Swiss press, Mr Wauthier's widow is reported to have accused Mr Ackermann of forcing her husband 'into a corner' and cited his 'tough management style' as a factor in his death.

Details of the note emerged a day after former Deutsche Bank chief executive Mr Ackermann issued an extraordinary statement in which he said Wauthier’s family had made allegations against him in connection with the unexplained death.

Ackermann 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.

Tragedy: Pierre Wauthier was found dead in his apartment in Zug, Switzerland on Monday

‘

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.’

Vice chairman Tom de Swaan will replace Ackermann.

It is the second potential Swiss suicide in recent months at a high profile firm. Carsten Schloter, chief executive of telecoms firm Swisscom, also took his own life.

Wauthier, who had a wife and two grown up children, joined the firm as head of investor relations and rose rapidly to board level.

He was described by one colleague as ‘rational, easy going and wonderful’.

A spokeswoman for Zurich Insurance did not elaborate on what allegations Ackermann was referring to surrounding Wauthier, who was 53 and left a wife and two children.

Zurich's chief executive Martin Senn had said he was not aware of any dispute that could have driven Wauthier to his death.

'We didn't spot any conflicts that could or should have led to such a death,' Senn told Swiss television.

However, a former colleague of Wauthier's said there was pressure within the company to increase its share price.

Two insurance executives outside the firm's headquarters in Zurich described their colleagues as 'somewhat shellshocked' and said Ackermann's departure was a surprise for the industry.

One of Europe's leading economic power brokers, Ackermann, 65, transformed Germany's Deutsche Bank and played a role in the euro zone's financial crisis as chairman of the Institute of International Finance (IIF).

High-flyer: Mr Wauthier was appointed to the post of CFO at Zurich Insurance Group in September 2011. He had been with the company for 17 years

He was touted as a candidate for top financial jobs in his native Switzerland before he took the relatively low-key role at Zurich last year. He also sits on the boards of Royal Dutch Shell, Siemens and Investor AB.

Ackermann has survived controversy before. In 2006, he paid 3.2 million euros, without admitting wrongdoing, to avoid trial in a dispute over payments to executives at telecoms firm Mannesmann, where he sat on the board of directors.

One of few senior industry figures to keep his job through the current financial crisis, he became a forceful public advocate for the Swiss financial sector after leaving Deutsche.

'Ackermann's mission when he came was to shake up Zurich, to infuse a more dynamic mentality into it,' said a person close to the former Zurich chairman.

'Yes, insurance isn't banking. But there was still more oomph to be wrung out of Zurich, he thought.'

When Ackermann took over as Deutsche Bank chief executive in May 2002, radical surgery was needed. Burdened with high costs, it was slipping as one of the largest lenders in Europe.

The first non-German to lead the bank, Ackermann was asked to transform it into a 'global champion', but fell out with a German establishment that saw Deutsche's traditional role as supporting national industries.

When Ackermann joined the Frankfurt-based institution, the bank derived more than 70 per cent of revenues from Germany. Ackermann sold off industrial holdings and slashed jobs, and Deutsche now makes less than 30 per cent of its revenue there.

However, his arrival at Zurich failed to impress investors and there was considerable change in the top ranks.

Former general insurance head Mario Greco left a year ago to become head of Italian insurer Generali. Two weeks ago the head of its life insurance arm, Kevin Hogan, left to become AIG's head of consumer insurance.

On Aug. 15, Zurich said it would be hard pressed to meet certain performance targets after posting a 27 percent fall in second-quarter net profit due to natural disaster payouts, which topped those of European rivals because of its high exposure to the United States.

The shares closed down 2.47 percent at 228.80 francs, but remained above the low of 225.6 francs that they reached on Tuesday after news of Wauthier's death. The volume of shares traded on the day, however, was the highest in over three years.

Josef Ackermann resigns from Zurich after finance director's 'suicide'

One of Switzerland's leading business figures quits insurance firm with immediate effect, citing pressure from the family of Pierre Wauthier, who was found dead on Monday

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• Rupert Neate
• theguardian.com, Thursday 29 August 2013 09.20 EDT

Josef Ackermann, formerly head of Deutsche Bank and Zurich. Photograph: Ralph Orlowski/REUTERS

The chairman of Swiss insurance firm Zurich has resigned, citing pressure to take a "share of responsibility" for the death this week of the company's finance director, suspected to have killed himself.

Josef Ackermann quit with immediate effect on Thursday saying the family of Pierre Wauthier, who was found dead at his home on Monday, had let it be known he should take some responsibility for their loss.

"The unexpected death of Pierre Wauthier has deeply shocked me,"Ackermann said in a statement. "I have reason to believe that the family is of the opinion that I should take my share of responsibilty, as unfounded as any allegations might be.

"To avoid any damage to Zurich's reputation, I have decided to resign from all board functions with immediate effect."

If it is confirmed Wauthier killed himself it would be the second time time the past five weeks a boss in a top Swiss company has done so. Carsten Schloter, the 49-year-old former chief executive of mobile phone company Swisscom, took his own life in July.

Three months before he died Schloter spoke of his intense difficulty to switch off from the pressure of work. "The most dangerous thing that can happen is that you drop into a mode of permanent activity," he said in an interview in May. "I notice in myself how I find it harder and harder to find the time to take my life down a gear."

A spokesman for Zurich refused to explain what allegations Wauthier's family may have made about Ackermann. The spokesman said he was unable to explain why Ackermann had resigned despite describing the allegations as unfounded.

The spokesman said Zurich no longer represents Ackermann and referred the Guardian to the 65-year-old executive's personal PR adviser, who did not respond to invitations to comment.

Wauthier, 53, a married father of two with dual British and French nationality, was found dead at his lakeside home in Zug, near Zurich, on Monday. An autopsy indicated he probably killed himself but this has not been confirmed. There have been conflicting reports in Swiss media over whether or not he left a note.

A woman who identified herself as Wauthier's widow said she was advised not to comment any further, when contacted by Bloomberg News on Thursday.

The death came less than two weeks after the company reported a 27% drop in second-quarter profits and warned the market that it probably would not meet its performance targets.

Wauthier, who had overseen the company's finances since 2011, held a master's degree in International Finance from l'Ecole des Hautes Etudes Commerciales and a masters in private law from the Sorbonne University in Paris. He worked for two years at the French ministry of foreign affairs and joined JPMorgan in 1985, before taking on the job at Zurich Insurance.

Ackermann, 65, one of Switzerland's leading business figures and a former chief executive of Germany's biggest bank Deutsche Bank, will be replaced by vice-chairman Tom de Swaan on an interim basis.

http://www.zerohedge.com/news/2013-08-29/chairman-zurich-insurance-quits-following-cfo-suicide

Chairman Of Zurich Insurance Quits Following CFO Suicide

Submitted by Tyler Durden on 08/29/2013 09:01 -0400

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Mere days after the CFO of Zurich Insurance, Pierre Wauthier, was found dead (of suspected suicide) at his home in Zurich, theWSJ reports that CEO Josef Ackerman has abrutly resigned. Just 18 months after his appointment at Zurich (after leaving Deutsche Bank's top position), Ackerman's sudden resignation appears based on his view that the late CFO's family felt he had some responsibility for the death. Following a dismal 7% drop in Q1 profits and having struggled in a low-rate environment since Ackerman took the reins, the reasons for the CFO's suicide are not apparent but a statement from Ackerman oddly commented, "I have reasons to believe the family is of the opinion that I should take my share of responsibility."

Via WSJ,

Zurich Insurance Group Chairman Josef Ackermann abruptly quit on Thursday morning, saying the family of the firm's late finance chief felt he should shoulder some of the responsibility for the executive's apparent suicide.

Mr. Ackermann's resignation comes days after Pierre Wauthier, the insurance giant's chief financial officer, was found dead at his home south of Zurich. Authorities believe Mr. Wauthier's death was likely a suicide.

...

"I have reasons to believe 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 the statement, adding that he was resigning to avoid any damage to Zurich's reputation. He couldn't be reached for comment.

A woman identifying herself as Mr. Wauthier's wife declined to comment.

...But Zurich Insurance has struggled in a low-interest-rate environment that has made reaching its targets more challenging.

In May, Zurich Insurance posted a 7% drop in profit for the first quarter, but assured investors it was on track to meet the targets it had set to achieve this year—such as boosting profitability at the general insurance business, its largest unit. But the company followed earlier this month by reporting another decline in profit for the second quarter.

...

The disclosure of Mr. Wauthier's death earlier this week drew unwanted attention to Zurich Insurance's challenges.

...