Pictet Makes Mass Appointments

Stephen Harris

22 March 2006

Geneva-based private bank Pictet & Cie has appointed 15 of its most long-serving and senior executives as group managing directors. The appointments mark a new departure for Pictet as the 15 will become financial participants in the Pictet Group and will share its risk and profits. They will not, however, join the eight partners of the bank and will not be asked to have unlimited liability. The new group managing directors, who will be required to buy into their participation, have not been named, although a spokesman for the bank confirmed that 11 work in the private banking side of the business. This is the first time in 200 years that Pictet have allowed non-partners to participate in the capital of the firm, although there has been some profit sharing arrangements since 1925. The appointments will have no impact on the job functions of the 15, nor will they affect the management structure within the group. The 15 executives were chosen not simply on seniority. “Entrepreneurial spirit and loyalty and contribution to the firm over a number of years were equally important,” the spokesman told WealthBriefing. Pictet will have a similar selection process yearly, although the floodgates will not open for large numbers of equity participants, according to the spokesman. The new participants are located around the world. Pictet has more than SFr300 billion of clients’ assets under management and administration. It operates in 12 countries with 17 offices and more than 2,000 staff. “We wanted to encourage an entrepreneurial spirit by promoting senior executives, while keeping intact our existing partnership. We thus enable our group managing directors to become more involved in Pictet’s strategy development, and to contribute to, and benefit from, its success,” said Ivan Pictet, senior partner, in a statement.