Tidjane Thiam's bonus is at the center of a new controversy. But it seems that the board of directors of Credit Suisse is taking action now.

The board of directors at Credit Suisse (CS) apparently disagrees on whether it accepts the way in which the bonus of outgoing CEO Tidjane Thiam is calculated for 2019. As the Swiss newspaper «Sonntagszeitung» (behind paywall, only in German) reveals, the bank is in a dispute over the former CEO's compensation.

According to a bank spokesman, the compensation committee, which is responsible for salary issues, will now decide what will and will not be included in the adjusted figures.

Adjusted Profit in the Spotlight

The record profit presented last Thursday by Switzerland's second-largest bank was distorted by a special effect, as finews.asia reported. The sale of real estate and the fund service platform Investlab, as well as the appreciation of a stake in the stock exchange operator SIX, brought the bank almost 1 billion francs.

Normally, such effects are left out of the calculation of bonuses – but the adjusted pre-tax profit of 5 billion francs now largely included the special effects.

Impact on Other Key Figures

The adjusted pre-tax profit is also relevant in the calculation of Thiam's bonus; special effects influence the return on equity too – another factor in the compensation calculation.

Last year, Thiam's bonus amounted to 9.5 million francs with a base salary of 3 million francs – a massive pay increase. In 2017, the former CEO had waived 1.5 million francs of his bonus.