The bonus pool is becoming still shallower at Credit Suisse. To retain its executives, Credit Suisse is said to be resorting to a concept it used last year.
Executives at Credit Suisse, which by all accounts had a difficult year, will hardly be pleased as the bank reverts to last year's compensation formula for the ranks from director to managing director.
According to an internal memo, senior management will receive the cash portion of their variable compensation immediately, according to an internal memo obtained by «Bloomberg». But there is a catch.
Rewarding Loyalty
Anyone accepting the bonus and leaving Credit Suisse within three years must the amount back on a pro-rated basis. This is similar to the bonus formula used last year, as finews.com reported. Recipients were paid the cash portion into a blocked account, and the measure seems to have been rather unpopular.
The bonus pool at Credit Suisse shrunk again for 2022. According to media reports, it has been halved since 2021. In the memo, the bank's management concedes the compensation pool will be lower than in previous years. The upfront cash payment recognizes executives' contributions and rewards loyalty.
