CONTACT US

For any general inquiries, please fill in the following contact form:

Our websites never use cookies or other technologies such as pixel tags and web beacons. We only retain personal information when the contact section of our websites is filled. To proceed and get in touch with us through this format please read our Terms & Conditions, updated to be in line with the provisions of the GDPR, and tick this box to consent in us retaining the above information for contacting purposes only.

SUBMIT

Credit Suisse CEO pockets US$12 million despite back-to-back losses

Credit Suisse CEO pockets US$12 million despite back-to-back losses

ZURICH: Credit Suisse Chief Executive Tidjane Thiam's pay for his first full year in the job swelled to 11.9 million Swiss francs (US$12 million), while bonuses rose 6 percent despite back-to-back annual losses at Switzerland's second-biggest bank.

Executive pay is a hot-button issue in Switzerland, with voters backing a "fat cat" referendum in 2013 giving shareholders a binding vote on pay.

Thiam's pay packet followed a near-3 billion franc loss at Credit Suisse in 2016 amid a major restructuring and penalties for the sale of toxic mortgage debt in the run-up to the financial crisis.

"Overall, the board considered Mr Thiam's strong leadership, consistent execution of the group's communicated strategy, effective delivery of cost efficiencies, principled and ethical conduct, and his role in driving the group toward a stronger capital position in determining that Mr Thiam had met his performance targets set for the year," the bank said in its annual report on Friday.

Thiam, a former Ivorian government minister who is reshaping the bank by boosting wealth management and scaling back investment banking, earned 4.57 million francs in 2015 after joining Credit Suisse from British insurer Prudential at mid-year. He had requested a 40 percent bonus cut that year.

Chairman Urs Rohner's compensation rose to 3.98 million francs in 2016 from 3.2 million. The bank's bonus pool increased to 3.09 billion francs.

Rival UBS paid Chief Executive Sergio Ermotti 13.7 million francs last year and cut its bonus pool by 17 percent to 2.9 billion francs. Deutsche Bank CEO John Cryan took home 3.8 million euros (US$4.1 million) last year.

CAPITAL QUESTIONS

Credit Suisse upped its net loss for 2016 to 2.71 billion francs from 2.44 billion after agreeing in principle to settle a residential mortgage-backed securities (RMBS) case with the National Credit Union Administration Board in the United States.

This cut the bank's common equity tier 1 ratio, a closely watched measure of balance sheet strength, to 11.5 percent from 11.6 percent, heightening its need to raise capital.

Credit Suisse's current plan is to raise up to 4 billion francs via an initial public offering (IPO) of a minority stake in its Swiss banking division.

However, it is also considering a quick-fire share sale at group level and its board of directors is set to decide in April how to proceed, Reuters has reported.

A speedy share sale via a so-called accelerated bookbuilding (ABB) could be a simpler solution, according to Bernd Ackermann, who covers Credit Suisse for S&P Global Ratings.

"In terms of the money it can raise, it is neutral to our ratings if it's through the IPO or an accelerated bookbuilding," Ackermann told Reuters on Thursday.

"But it could be better not to have the more complicated, fragmented structure you'd get through the IPO."

One hurdle to clear for an ABB is the amount of new stock shareholders authorize the bank to issue. In its invitation to next month's annual meeting, it proposed increasing its authorized capital only for its scrip dividend.

(Editing by Mark Potter)

- Reuters

http://www.channelnewsasia.com/news/business/credit-suisse-ceo-pockets-us-12-million-despite-back-to-back-los/3622684.html

MORE NEWS

Watchdog berates PwC over 'misleading' BHS accounts

Watchdog berates PwC over 'misleading' BHS accounts
Regulator criticises accountant for signing off ‘unrealistic’ forecasts before sale of retailer.BHS’s accounts were misleading and featured ...

Serious Fraud Office suspends lawyer in charge of Unaoil investigation

Serious Fraud Office suspends lawyer in charge of Unaoil investigation
The senior lawyer in charge of an ongoing criminal investigation into Monaco-based oil firm Unaoil has been suspended. Tom Martin, the ...

Switzerland's ZKB to pay $98 million to end U.S. probe of tax evasion

Switzerland's ZKB to pay $98 million to end U.S. probe of tax evasion
NEW YORK (Reuters) - Swiss lender Zuercher Kantonalbank (ZKB) [ZKB.UL] has agreed to pay about $98 million to resolve a U.S. investigation ...

Who's behind the blog

Who's behind the blog

SOCIAL MEDIA