Societe Generale’s CEO Reshuffles Top Management in Pursuit of Renewed Growth

In a sweeping move aimed at reinvigorating his ambitious turnaround strategy, Societe Generale’s Chief Executive Officer Slawomir Krupa has restructured the executive leadership. The significant shift sees long-standing executives Deputy CEO Philippe Aymerich, CFO Claire Dumas, and French retail banking head Marie-Christine Ducholet stepping down, as confirmed by the bank in a recent statement.

Following these departures, Pierre Palmieri will remain as the sole deputy CEO. Leopoldo Alvear, currently with Banco de Sabadell SA, is set to assume the role of CFO on January 7. This reshuffle marks Krupa’s second major management overhaul since his appointment as CEO over a year ago and comes on the heels of the bank’s stronger-than-expected third-quarter results. Notably, the French retail banking division has shown signs of recovery after a challenging period marked by costly interest rate hedging missteps.

Krupa will now directly oversee French retail operations, with Bertrand Cozzarolo and Thierry Le Marre sharing responsibilities for the unit previously managed by Ducholet. Dumas will stay on through January to ensure an orderly transition.

Since taking the helm, Krupa has pursued a cautious strategy, tempering revenue and profitability targets while prioritizing capital strength. This included lowering shareholder payout expectations to bolster financial resilience and operational efficiency. Early challenges, particularly from the French retail sector’s hedging issues, are expected to have cost the bank around €1.6 billion in revenue last year and continued to impact results into the first half of 2023.

Societe Generale’s shares have rallied 18% since August, suggesting a possible turnaround for the bank’s French operations. Yet, the stock remains approximately 10% lower than when Krupa announced his strategy, leaving it among the underperformers in Europe’s banking sector index.

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