August 13, 2022

Credit Suisse cuts bonus funds by 30 percent

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Contrary to reports coming out of Bloomberg last week, the news is far worse than expected for staff at the leading investment bank – Credit Suisse. Known for their forward-thinking approach to bonuses and staff funding pools, Credit Suisse have announced their staff bonus fund is down over 30% following increased pressure from the Swiss regulator FINMA. This news follows a poor final quarter for 2021 which is reflected in the funds available in the bonus pool. The Swiss Bank posted disturbing losses of over 2 billion USD for the final quarter of 2021 which saw share prices plummet by over 5 percent.

In the bank’s earnings report, CEO Thomas Gottstein acknowledged that 2021 was a “very challenging year” for Credit Suisse.

This news follows a reduction in staff compensation by 12% in 2021 and the announcement the investment bank was changing the structure of bonuses, with directors and above receiving cash that can be clawed back if they leave within three years.

Highlights of the ‘challenging year’ included:

Departure of Eric Varvel following his clashes with the new Chairman António Horta-Osório

$5.5 billion trading loss from the implosion of investment fund Archegos

Antonio Horta-Osorio’s resignation after repeatedly violating Covid-19 quarantine rules.

Alleged links to criminals including human rights abusers

 

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