Times are tough for European lenders, with many banks having opted to gut their bonus programs facing lower revenues, profits, and tightened outlooks. Credit Suisse recently announced an expansion to its bonus pool, only to reverse its stance some weeks later amidst investor backlash – this included its CEO, Tidjane Thiam, whose salary looks to be reigned in to CHF 10.24 million ($10.2 million).
Last month, Credit Suisse announced an expansion in its bonus pool, along with a sizable bump for top management, including its CEO Tidjane Thiam, the group’s primary figure responsible for its restructuring process. 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.
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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.
Consequently, Credit Suisse is now revealing that Mr. Thiam’s salary has been reduced to $10.2 million, down another CHF 11.9 million ($11.9 million), or -14.2 percent, from a previous announcement that the group’s senior management offered to cut their bonuses by 40 percent, according to a Reuters report.
In total, Mr. Thiam’s overall compensation will be reduced by CHF 4.7 million ($4.7 million) in the bonus cut, helping swiftly extinguish the narrative that Credit Suisse’s top management would be beneficiaries from the widespread cuts facing the lender in recent months.