UBS announced yesterday the appointment of Chi-Won Yoon as chairman and CEO of Asia-Pacific with immediate effect. He succeeds Rory Tapner who, after 25 years, is leaving UBS.
Although Tapner could not be reached for comment, colleagues say their understanding is that he plans to do "good works". As one colleague put it: "If he joins a competitor, I'd eat my hat."
"Chi-Won's appointment ensures that UBS is well positioned to face the next stages of the firm's development and growth in Asia-Pacific", said Tapner in a press release, adding even more glowing comments in an internal memo to staff.
"Chi-Won's indisputable track record of commercial success and proven leadership skills will ensure that the firm maintains its focus and continues to enjoy the support of its clients. I would like to thank Rory sincerely for his invaluable contribution to UBS since he joined the firm in 1983," Oswald Grübel, group chief executive officer, said in a press release.
Yoon, who will also become a member of UBS's group executive board, joined the Swiss bank in 1997 as head of equity derivatives. He become head of Asia equities in 2004, head of Asia-Pacific equities in 2008, and head of equities and FICC (fixed income, currency and commodities) for Asia-Pacific in 2009. According to an internal memo sent to UBS staff, an announcement regarding Yoon's succession will be made in due course; in the interim, Yoon will continue to lead the equities and FICC businesses in the region.
In addition to Yoon's 12-year history with UBS, he has 20 years of industry experience and on top of that he is a rocket scientist -- how many bankers can boast that? Before embarking on a career on Wall Street, Yoon worked as an electrical engineer, designing the satellite communications network used in the US space shuttle programme. He began working in the financial services industry with a focus on equity derivatives in 1986, and worked six years at Merrill Lynch in New York and a few years at Lehman Brothers in both New York and Hong Kong before joining UBS in 1997. Yoon holds a bachelors degree in electrical engineering and a masters in finance, both from the Massachusetts Institute of Technology.
During Tapner's 25-year tenure with UBS, he was global head of equity capital markets (1995 -1999), joint global head of investment banking (1999-2004), and for the past five years, chairman and CEO for Asia-Pacific as well as a member of the group executive board.
The review of Tapner's tenure is positive; consider segments of this internal memo sent by Grübel to UBS staff: "The targets [Tapner] set, to substantially grow our revenues and profits from the region have all been achieved, and the share of group revenues represented by Asia-Pacific now exceeds 20%. This from a business that represents only 6% of the group's balance sheet and risk-weighted assets, and employs 11% of our global workforce. Rory also led the execution of our China strategy, establishing UBS as the leading foreign financial institution to gain a domestic foothold in investment banking, asset management and wealth management in China."
Several colleagues said they were sorry to see Tapner go, and Tapner's letter explaining his resignation to the Asia-Pacific staff clearly showed he enjoyed building the business and respected his colleagues:
"I want to take this opportunity to outline for you -- as you are entitled -- the considerations that led me to this decision. First, I want to pursue interests outside financial services while I still have (relative!) youth, passion and time on my side. Second, I sincerely believe that, as with so many positions in our industry, the chairman and CEO, Asia-Pacific role at UBS has a 'life'; a 'limit'. Irrespective of what any incumbent may have achieved, an infusion of new ideas is essential to maintain and extend the effectiveness of the role. I am delighted that in Chi-Won Yoon we have a leader of the calibre needed to provide the ideas, energy and leadership that will take our substantial businesses in Asia-Pacific to the next level. And third, despite the challenges faced by UBS since the end of Q12007, our businesses in Asia-Pacific have demonstrated resilience, durability and continued industry leadership. I am comfortable that in stepping down now, all of your achievements of the past few years provide a sustainable platform off which a great deal more can be achieved."
Tapner went on to thank his colleagues, speaking of the "dynamism, opportunity and camaraderie of the region", noting that: "For my part, there is no role in UBS that I have enjoyed more. I could have done without quite so many air miles (although I may now get to use some of them!), but the opportunity to live and work in such a fascinating region, all the while working with such a talented group of colleagues has been deeply stimulating and profoundly satisfying."
While the announcements of an amicable departure and a talented incumbent are positive, this all still needs to be set against the greater UBS backdrop. The bank reported a first-quarter loss of almost SFr2 billion ($1.75 billion) and is currently retrenching 8,700 people worldwide.
Not surprisingly, you need a flow chart to follow the management changes. Globally they include the April appointment of Alex Wilmot-Sitwell and Carsten Kengeter as co-chief executive officers of the investment bank. The pair replaced Jerker Johansson who resigned after one year in the CEO role. Also in April, UBS hired former Credit Suisse bigwig Ulrich Korner as its group chief operating officer and CEO of the corporate centre. Earlier this year it appointed Kaspar Villiger, a former Swiss finance minister, as its chairman to replace Peter Kurer, while Grubel became CEO after Marcel Rohner announced his departure in January.
Closer to home, Rob Rankin resigned as head of investment banking for Asia-Pacific in March. He was succeeded by David Chin and Matthew Hanning, who became joint heads of investment banking for Asia. Also in March, the bank appointed Henry Cai to a new role as chairman of investment banking for Asia -- a job he took on in addition to his existing role as head of investment banking for China.
Cai was also chairman of China within the investment banking division, and this job he relinquished to Zhao Ju, who took charge of the domestic China investment banking business. In January the bank appointed Timothy Chia as vice-chairman of UBS investment bank in Asia, replacing Robin Tomlin, who had held the position for eight years.
It's clear the upper management changes have been filled with highly qualified bankers, but no matter how you slice it, changes have been the norm at the Swiss bank in recent months and the onus is on the new appointments to make magic.
