(Bloomberg) --
The upheaval in Europe's banking industry isn't letting up.
On Monday, Barclays Plc became the 10th major lender since late 2019 to replace its chief executive officer when it named C.S. Venkatakrishnan as successor to Jes Staley, who unexpectedly stepped down. UniCredit SpA, Danske Bank A/S and Commerzbank AG are among other firms whose CEOs left under a cloud.
Overall, half of the CEOs of Europe's top 20 listed banks have been in their roles for two years or less. The remaining 10 bank bosses have held their positions for more than six and a half years on average, according to calculations by Bloomberg based on company filings.
More than a decade after the financial crisis revealed flawed business models and deep cultural failings, European banks are still grappling with deficient governance and slim profits. The top job has become increasingly precarious with CEOs held to higher standards by regulators and investors.
“The age of bank CEOs being in their seat for a decade or longer is coming to an end,” said Dieter Hein, a banking analyst at Fairesearch/Alphavalue, who is based close to Frankfurt. “The demands on CEOs have risen. They have to be role models, and they're in a similar position to politicians.”
Here's a summary of some of the leadership changes at European banks over the last two years:
- Staley is stepping down immediately at Barclays amid a U.K. regulatory probe into how he characterized past ties to sex offender Jeffrey Epstein.
- Less than two years into the job, Danske Bank replaced its CEO in April after he was implicated in a Dutch money-laundering investigation.
- Andrea Orcel replaced Jean Pierre Mustier as UniCredit's CEO in April after he clashed with his board over strategy, including his opposition to domestic takeovers.
- Manfred Knof took over leadership of Commerzbank in January after multiple strategy reboots by his predecessor failed to put the German lender on a path to adequate profitability.
- HSBC Holdings Plc named caretaker CEO Noel Quinn as its permanent boss in March 2020 after it struggled to secure an external candidate following the ouster of predecessor John Flint over doubts that he was up to the task.
- Credit Suisse Group AG saw Tidjane Thiam resign as CEO in February last year after the company was rocked by cases of spying. Thomas Gottstein, his successor, has had a rough time this year after bad deals revealed deficits in its risk-taking culture.
Some leadership changes have been smoother. Last November, UBS Group AG named Ralph Hamers to replace Sergio Ermotti, one of Europe's longest-serving bank CEOs. The Swiss lender portrayed the move as a chance to build upon its strategy, rather than tear it up.
Even so, Hamers -- who led ING Groep NV for almost seven years -- faced questions about his role in the Dutch lender's past failures to comply with anti-money laundering rules. ING found a successor among its own ranks.
©2021 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
