Credit Suisse Walks Back Bonus Program for Senior Leadership
- The group's CEO Tidjane Thiam has faced enormous backlash from investors for his bonus hike.
Credit Suisse’s short-lived bonus expansion for its top management has already been met with investor backlash, given the group’s recently reported -$2.4 billion loss in 2016 and other industry headwinds facing the lender.
The London Summit 2017 is coming, get involved!
Last month, Credit Suisse announced an expansion in its bonus pool by 6.0 percent, along with a sizable bump for top management, including CEO Tidjane Thiam. The move was came at a time when other lenders were embarking on a different course altogether, such as Deutsche Bank, which gutted its bonus pool and opting for different payout strategies in the form of shares.
The move did not sit well with many rank and file, as well as investors, given the announcement occurred on the back end of a fresh round of job cuts – these losses were restricted to jobs in its Asian equities desks, as well as another 5,500 positions forthcoming, casting a shadow on its 2017 outlook.
For its part, Credit Suisse is in the midst of its restructuring plan, with Mr. Thiam pledging a turnaround for the lender. Like its other European counterparts, lenders have struggled to restore profitability, also grappling with the upcoming Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term schism that is unlikely to Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term any positives for the banking community, especially in the UK.
Given the opposition and negative press surrounding the move, Mr. Thiam offered to have their bonuses cut 40 percent, a fact made more plausible after investor advisory groups opposed the packages ahead of this year’s annual meeting. In addition, Mr. Thiam and the executive board volunteered to shrink long-term incentive awards for 2017 and short-term incentive awards for 2016, according to a Bloomberg report.
Credit Suisse’s short-lived bonus expansion for its top management has already been met with investor backlash, given the group’s recently reported -$2.4 billion loss in 2016 and other industry headwinds facing the lender.
The London Summit 2017 is coming, get involved!
Last month, Credit Suisse announced an expansion in its bonus pool by 6.0 percent, along with a sizable bump for top management, including CEO Tidjane Thiam. The move was came at a time when other lenders were embarking on a different course altogether, such as Deutsche Bank, which gutted its bonus pool and opting for different payout strategies in the form of shares.
The move did not sit well with many rank and file, as well as investors, given the announcement occurred on the back end of a fresh round of job cuts – these losses were restricted to jobs in its Asian equities desks, as well as another 5,500 positions forthcoming, casting a shadow on its 2017 outlook.
For its part, Credit Suisse is in the midst of its restructuring plan, with Mr. Thiam pledging a turnaround for the lender. Like its other European counterparts, lenders have struggled to restore profitability, also grappling with the upcoming Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term schism that is unlikely to Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term any positives for the banking community, especially in the UK.
Given the opposition and negative press surrounding the move, Mr. Thiam offered to have their bonuses cut 40 percent, a fact made more plausible after investor advisory groups opposed the packages ahead of this year’s annual meeting. In addition, Mr. Thiam and the executive board volunteered to shrink long-term incentive awards for 2017 and short-term incentive awards for 2016, according to a Bloomberg report.