Wealth Management Crisis at UBS (A)

Paul M. Healy; George  Serafeim; David  Lane

Case | HBS Case Collection | March 2011 (Revised February 2018)

Wealth Management Crisis at UBS (A)

by Paul M. Healy, George Serafeim and David Lane

Abstract

The case describes the challenges that UBS faced as a result of the U.S. Department of Justice (DOJ) investigation for tax fraud, that claimed that UBS had helped some 52,000 U.S. residents hide billions of dollars in untaxed assets in secret Swiss accounts between 2000 and 2007, depriving the U.S. Treasury of hundreds of millions of dollars in taxes.

Keywords: Misleading and Fraudulent Advertising; Competitive Strategy; Taxation; Risk Management; Global Strategy; Asset Management; Emerging Markets; Ethics; Problems and Challenges; Governing Rules, Regulations, and Reforms; Financial Services Industry; United States; Switzerland;

Language: English

Format: Print

17 pages

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Citation:

Healy, Paul M., George Serafeim, and David Lane. "Wealth Management Crisis at UBS (A)." Harvard Business School Case 111-082, March 2011. (Revised February 2018.)

Case | HBS Case Collection | November 2018

Governance Transition at Anadolu Group

Paul M. Healy and Esel Y. Cekin

Kamil Yazici and Izzet Ozilhan founded and built Anadolu Group Holding; a family business that grew into a multi-billion-dollar regional powerhouse. For 57 years they were equal partners in running the company. They then handed over a leadership role to a next generation family member; Izzet’s son Tuncay; who became the CEO and later also chairman. Under Tuncay’s leadership; the company was primarily run by professional managers; supplemented by a limited number of second- and third-generation family members in senior executive positions. However; in 2017; when the number of next-generation family members reached 85; Kamil and Tuncay began work on a governance structure they hoped would sustain the company when they left. Under their plan; family members would no longer be allowed to hold general management positions. As a result; Tuncay retired as CEO and other family members with senior executive roles resigned. A holding company was created to bring all the company’s subsidiaries under a common structure. And a process was created to allow some members of the two surviving families to hold board seats. Although the stock market reacted positively to the increased transparency brought about by the changes; it remains to be seen whether the new formula will achieve its goal of successfully transitioning the company from a family-managed business to professionally-run company.

Keywords: family-managed business; professionally-run company; second-generation; third-generation; governance; governance changes; succession planning; corporate culture; shareholders; board of directors; long-term sustainability; conglomerate; Family Business; Corporate Governance; Change Management; Management Succession; Leadership; Transition; Organizational Structure; Consumer Products Industry; Turkey; Central Asia; Middle East;