The abrupt sacking of the highly-regarded Luqman Arnold from UBS, the Swiss-based international bank, has knocked the stock price and dismayed investors and many of the staff. But the episode says more about Swiss corporate governance than about the fortunes of Europe's third largest bank.

UBS and its investment banking business UBS Warburg has had a good year. At a time when many of its competitors have been struggling in the downturn and slashing staff, UBS Warburg has been weathering the storm and winning market share. It can be justifiably proud of its performance in European equity issuance and M&A and it has quietly trimmed costs without having to resort to demoralising, large-scale firings.