Wages, bonuses, dividends: the big bank wants to regain lost confidence with austerity measures. Consequences on staff in the executive suite are also expected.
Credit Suisse (CS) is deeply involved in two scandals over falling hedge funds. The big Swiss bank is threatened with huge cancellations in billions. As a result, the share price of the financial institution fell. Because risk control has failed, CS’s reputation is now at stake as well.
The bank has already taken the first steps in terms of staff. He released the Swiss and European head of asset management, Michel Degen, and two other employees. And there will probably be more exits.
The risk boss should probably leave the sites
Next week, the CS is expected to provide more information on the scope of the two scandals. Then, it could have more consequences on staff at the highest level to regain lost trust.
Risk chief Lara Warner is expected to step down, as the “Sunday newspaper” writes. Board Chairman Urs Rohner has always defended herself for it, but it is likely that the pressure has become too great after the scandals.
It is also believed that the career of the head of investment banking, Brian Chin, remains on a common thread. President Urs Rohner is also counted. According to reports, he could retire before his last general assembly, before his successor António Horta-Osório took over in late April.
Head’s salary waiver?
At this general meeting, the discharge of executive bodies should not be put on the agenda, it is said from the board environment. In doing so, the board of directors wants to anticipate those shareholders who would have refused to sign up anyway.
In addition, the bank will announce a bonus sacrifice for senior management. It is unclear how many millions the bonus will be reduced to the floor of the carpet. President Urs Rohner is also expected to give up part of his salary, as investors have called for.
Over the Easter weekend, the CS board will also discuss the possibility of dividends. It could be canceled, shortened or postponed. Another measure that threatens to stop the current stock repurchase program.
Credit Suisse earned less last year due to the aftermath of the Crown crisis and the costs of old legal disputes. According to the company’s own information, the surplus fell by 22% to 2.7 billion Swiss francs. One of the reasons for the fall in profits was the provision for loan defaults due to the pandemic, which increased to almost 1.1 billion francs. In 2019, the value was only 324 million francs.