To keep its dealmakers from leaving, Credit Suisse is raining money on its dealmaking rainmakers.
Credit Suisse significantly ratcheted up its deferred cash and share retention bonuses in the third quarter to retain key staff at a time when the firm is undergoing a restructuring of historic proportions, according to a financial report published yesterday.
The retention awards totaled 296 million Swiss francs ($296.3 million), mainly in the investment banking unit and corporate functions, which is around six times more than the 49 million it paid out during the same period last year. The bonuses will be expensed over the vesting period from the date they are granted.
Cash Awards
Also during the third quarter, 63 million francs of deferred fixed cash compensation was granted in investment banking, wealth management, and asset management. They will be expensed over a three-year vesting period.
Credit Suisse's investment banking unit is being spun off into a rebranded CS First Boston and will be headed by Michael Klein, as finews.com reported.
