Credit Suisse to pay CHF 1.9 billion bonus

24th September 2009, Comments 0 comments

Staff from Swiss bank Credit Suisse will receive CHF 1.9 billion in stock under a 2005 incentive plan

London - About 300 staff from Swiss banking giant Credit Suisse stand to receive about CHF 1.9 billion (USD 1.8 billion, EUR 1.2 billion) in stock under a bonus plan introduced in 2005, a report said Thursday.

The bankers and executives are set to receive their rewards under the performance-based scheme introduced in 2005 as the bank struggled to retain staff, the Financial Times said.

The "performance incentive plan" includes some of the elements that critics of bankers' bonuses demanded following the global financial crisis, the FT said.

The scheme saved Credit Suisse necessary funds at the time, but proved unpopular among staff because it forced them to wait five years and remain at the bank before receiving their rewards.

The rewards are due in March and because the bank met performance and share price targets, staff could receive about 2.76 Credit Suisse shares for each unit they were awarded, according to the newspaper.

The total amount is worth some CHF 1.9 billion.

"The PIP programme was ahead of its time and is very consistent with the focus on long-term risk-adjusted compensation being discussed today," said Paul Calello, head of Credit Suisse's global investment bank.

Revising bonuses paid to banking executives is set to be discussed at the G20 summit starting Thursday in Pittsburgh and hosted by US President Barack Obama.

EU leaders agreed to pursue changes at the summit that include ending guaranteed bonuses and providing rewards for "long-term performance".

AFP / Expatica

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