Josef Ackermann tried to shake up Zurich Insurance Group AG.Now, allegations that he was partly responsible for the suicide ofthe chief financial officer are casting a shadow over his 35-yearcareer.

Pierre Wauthier, who was found dead on Aug. 26 at his home nearZug, Switzerland, mentioned Ackermann in a suicide note. The Swissnative, 65, quit as chairman three days later and called theallegations “unfounded.” Zurich Insurance, facing renewed concernsabout its financial health, has since said it's looking intowhether undue pressure was placed on the CFO.

“No matter which way you cut it, the departure amounts to apersonal failure,” said Lutz Roehmeyer, a fund manager atLandesbank Berlin Investment, who helps oversee more than 11billion euros ($14.5 billion). “He'll be seen either as a bad guywho forced a person to suicide, or someone who couldn't pushthrough what he wanted. This will limit his job opportunities tocompanies that wouldn't normally have come into question.”

As chief executive officer of Deutsche Bank AG, Ackermann helpedtransform a German-focused institution into Europe's largestinvestment bank, steering the company through the global financialturmoil of 2008 and ensuing euro-region fiscal crisis. In May 2012,he ended his 10-year career at the helm of the Frankfurt-basedlender to return to his home country.

Ackermann's resignation as chairman of Zurich Insurance was hispersonal decision after the CFO's family accused him of sharingresponsibility for the 53-year-old's death, according to interimChairman Tom de Swaan. In a statement on Sept. 1, Ackermann saidthat “out of respect,” he doesn't want to make any further commentsabout “this tragic event.” On Aug. 29, he said the suicide had lefthim “deeply shocked.”

Joerg Neef, a spokesman for Ackermann, said no legal action hasbeen taken against the former chairman. Bjoern Emde, a spokesman atZurich Insurance, said by e-mail that “at present, we are not awareof any legal action against Zurich in the context of recent eventssince Pierre Wauthier's death.”

Ackermann considered Zurich Insurance a “slightly dusty placefull of officials that needs to be put into shape,” Tages-Anzeigernewspaper reported on Aug. 30, citing an unidentified personfamiliar with the matter.

The company is now seeking to repair the damage to itsreputation, CEO Martin Senn told NZZ am Sonntag in an interviewpublished on Sept. 1, adding that he had a “good professionalrelationship with Mr. Ackermann.” De Swaan has said that he's notaware of any inappropriate behavior toward the former CFO.

'Broad Sweep'

Charles Dallara, former managing director of the Institute ofInternational Finance, who has worked with Ackermann for more thana decade, said that he doesn't share the pessimism aboutAckermann's legacy.

“He is one of the most accomplished leaders of his generation—ofcourse leaders are demanding, they have to be,” Dallara said in aphone interview. “I don't want to trivialize what has happened, itis tragic, but when looking at a career, you have to see it in abroad sweep.”

While the former colonel in the Swiss Army put pressure onmanagement to improve Zurich Insurance's performance, he didn'tconsider his efforts excessive, said a person close to Ackermannwho asked not to be identified because the matter is private.

The CFO's suicide sparked fresh doubts about Zurich Insurance'sfinancial health after it missed analysts' profit estimates inthree of the past four quarters and announced a surprise write-offin October. That forced Senn to tell analysts on a conference callon Aug. 30 that there's no link between Wauthier's death and thecompany's business.

The insurer on Aug. 15 reported a drop in second-quarter netincome to $789 million from $1.09 billion a year ago and said thetarget for the general insurance business, its largest, is“challenging.” The profit was below the $823.8 million averageestimate of five analysts surveyed by Bloomberg, a second straightmiss.

The stock has decreased 3.9 percent this year, erasing about 2.2billion Swiss francs ($2.4 billion) in market value in the threedays after the CFO's death was first announced late Aug. 26. Theshares closed at 234 francs in Zurich, down 0.5 percent, the firstdrop in three days.

The insurer is the second-largest provider of property-casualtycoverage in the U.S., behind No. 1 State Farm Mutual AutomobileInsurance Co. Senn's company offers commercial insurance in thecountry under the Zurich name and has a management relationshipwith Los Angeles-based Farmers Insurance, which sells home and autopolicies.

Siemens, Investor

Ackermann still helps oversee some of the world's largestcompanies. He is deputy chairman of Siemens AG, Europe's biggestengineering company, and a board member of oil producer Royal DutchShell Plc and Investor AB, the publicly traded company of Sweden'sbillionaire Wallenberg family.

Ackermann didn't inform Siemens's board or senior managementbefore quitting his post at Zurich Insurance, a person withknowledge of the matter said. If facts emerged that he was in anyway responsible for the death of Wauthier, it would be discussed bythe board, said the person, asking not to be identified because thedeliberations are private.

Ackermann said in January that he isn't yet ready to spend histime playing golf, adding that he enjoys getting up every morningwith a plan to implement an idea or to move something, according toan interview with Swiss magazine Weltwoche.

Even if his professional standing survives the allegations,Ackermann will likely struggle with a personal blow, said BernhardBauhofer, founder of Sparring Partners GmbH, which advisescompanies on managing their reputations.

“He's certainly prepared to deal with critical shareholders orunions, but this situation is completely different,” said Bauhofer.“It's a personal tragedy.”

Ackermann has weathered negative publicity before. In 2004, hecaused a media storm by flashing the victory sign during a trial todetermine whether it was unlawful for him and five other MannesmannAG co-defendants to approve more than 57 million euros of bonusesto executives at the German mobile-phone company following itstakeover by Vodafone Group Plc.

While he later described the trial as “not pleasant,” he saidwhat preoccupied him the most was that “a picture of Ackermann as aperson has been painted, which doesn't correspond to reality,”according to an interview with Germany's Bild newspaper in January2006.

Record Profit

He drew more criticism in 2005, as Deutsche Bank announced 5,200job cuts as profits rose. Franz Muentefering, Germany's former ViceChancellor, who compared investors seeking short-term gains to thebiblical plague of locusts that descended on Egypt, criticizedAckermann for trying to bring “profit to the few at the expense ofmany,” calling his behavior “antisocial.” Stern magazine ran acover page of marching locusts in business suits, one making thevictory sign.

Ackermann rebounded, leading Deutsche Bank to a record profit in2007. He underestimated the effects of the U.S. subprime crisis onthe rest of the financial markets, and Deutsche Bank reported itsfirst annual loss since World War II a year later. Deutsche Bankstill weathered the global turmoil better than many competitors,such as Germany's Commerzbank AG and Zurich-based UBS AG, whichrequired state aid.

“High-powered business is in his blood and I can't imagine himwanting to give it up completely,” said Christopher Wheeler, ananalyst at Mediobanca SpA in London who has tracked Deutsche Bankfor about 14 years. “I am sure he will have many offers, but therecent publicity clearly may preclude him from certain roles.”

Ackermann was regularly spotted with government leaders andregulators in Athens, Brussels, Berlin, and Basel, where he helpedshape talks to bail out German lenders, reduce Greece's debt,leverage the euro-area's rescue fund, and influence regulation.

He also led a campaign to soften and postpone tougher capitaland liquidity requirements, warning of job losses and economicconsequences if banks were forced to curb lending. The BaselCommittee on Banking Supervision in 2010 agreed to weaken and delayits proposals. The changes included phasing in new rules over aperiod stretching to 2019.

As the former chairman of the Washington-based IIF, whichrepresents more than 450 financial firms, he helped negotiate anunprecedented deal in which investors took losses on Greeksovereign debt.

“He was a true leader, and not just in Germany,” Dallara said.“He was widely respected at the IIF. They all looked up to him. Hewas and remains a man of great character.”

Next Move

Ackermann started his career in banking at SchweizerischeKreditanstalt, a predecessor of Credit Suisse Group AG, in 1977 andworked in corporate banking in New York, foreign exchange tradingand treasury in Lausanne, and investment banking at the firm's CSFirst Boston unit in London, according to Munzinger Archiv GmbH, aGerman archive company.

He was promoted to Deutsche Bank's co-head of investment bankingin 1998, two years after joining as head of credit risks, and tookover sole responsibility for the unit a few months later. In 2002,he became CEO of Germany's largest bank.

He was succeeded last year by co-CEOs Anshu Jain, the formerhead of Deutsche Bank's corporate and investment bank unit, andGermany chief Juergen Fitschen.

There are plenty of people who'd like to use Ackermann'sknow-how, said Mediobanca's Wheeler.

“He might turn up in private equity or maybe at a large hedgefund in an advisory role,” he said. “His view will probably be thatthe situation that has occurred must play itself out before hemakes his next move.”

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