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Credit Suisse cuts CEO pay 34% after profit drops

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Bloomberg Zurich
Last Updated : Jan 20 2013 | 1:57 AM IST

Credit Suisse Group AG, Switzerland’s second-biggest bank, cut total compensation for CEO Brady Dougan 34 per cent for 2010 after profit declined.

Dougan’s pay of 12.8 million Swiss francs ($14 million) included a fixed salary of 2.5 million francs, which doubled from 2009, and 10.26 million francs in bonus and other compensation, the Zurich-based bank said in its annual report published today. He was paid 19.2 million francs in 2009.

Credit Suisse cut the total 2010 bonus pool by 27 per cent to about 5.05 billion francs, as net income fell 24 per cent to 5.1 billion francs. The decline in earnings was a result of lower client activity in the second half of the year.

UBS AG, Switzerland’s biggest bank, said earlier this month that CEO Oswald Gruebel decided to forgo his bonus for 2010 because the company’s shares didn’t rise in the period. UBS cut compensation for the highest-paid member of the executive board, investment bank head Carsten Kengeter, by 29 per cent to 9.32 million francs.

The top-paid member on Credit Suisse’s executive board was Antonio Quintella with total compensation of 15.63 million francs. The former CEO of the bank’s Brazil business was promoted to head the Americas region in July.

Deferred pay
The 16-member Credit Suisse executive board received total pay of 160.34 million francs, up from the 148.9 million francs given to 13 individuals in 2009. Board members except for Paul Calello, who passed away last year, didn’t receive any cash bonuses and on average got 24 per cent lower variable compensation that was fully deferred into future years, it said.

 

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First Published: Mar 25 2011 | 12:57 AM IST

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