ZURICH May 8 An influential advisory group has
encouraged Credit Suisse shareholders to vote against
plans to issue new shares for staff bonuses ahead of the Swiss
bank's annual general meeting on Friday.
The U.S.-based ISS opposes the Zurich-based lender's request
to more than treble its conditional capital to 1.6 million Swiss
francs ($1.8 million), it wrote in a recommendation to Credit
The group hopes to build on the near-25 percent support it
helped drum up against a similar initiative last year.
ISS objects to the 7.8 percent of share capital the equity
rewards would comprise of if the allocation were ratified, as
well as a lack of performance targets in place to earn the
Credit Suisse, Switzerland's second-largest lender, has come
under scrutiny as it faces a possible $1 billion-plus fine from
the U.S. Justice Department for helping Americans evade U.S.
taxes and criticism for not shrinking its investment bank
ISS supported the overall pay plan, which is among other
proposals that will be put to shareholders. The plan gives Chief
Executive Brady Dougan a 26 percent pay rise, to 9.8 million
Other shareholder groups including Swiss-based Ethos,
Actares and ZCapital have recommended investors vote down Credit
Suisse compensation policies entirely.
The compensation vote is non-binding, though it will be from
next year if a proposed amendment is ratified at the AGM.
Credit Suisse declined to comment.
($1 = 0.8781 Swiss Francs)
(Reporting by Joshua Franklin; editing by Susan Thomas)