The bonus pool at Credit Suisse will be lower than planned after its worst year since the financial crisis. Bank regulator asked bank for significant reductions.
Credit Suisse’s bonuses for 2021 are expected to be about 10 percent lower than previously planned. «Bloomberg» (behind paywall) reported Tuesday, citing sources.
The Swiss financial institution was forced to take this step after the Swiss Financial Market Supervisory Authority (Finma) asked the bank to consider significant cuts to the pool.
Deeper Cuts Avoided
Credit Suisse avoided deeper cuts after the bonus structure was adjusted, including provisions to claw back distributions should employees leave the company within three years. Such payments can be carried as loans, making it a more palatable solution for the regulator, the sources said.
The final bonuses amount could still vary slightly, and individual compensation would depend on the business unit, it said.
Scandals at Credit Suisse
The pay cuts come at a critical time for the Swiss bank which was rocked by the Archegos Capital Management and Greensill Capital scandals last year.
The bank needs to satisfy regulators in the wake of heavy losses while remaining competitive on salaries to avoid departures. Wall Street rivals such as J.P. Morgan and Goldman Sachs have raised their salaries.
