LONDON Feb 11 Credit Suisse CSGN.VX will pay
staff an average bonus of 144,000 Swiss francs ($135,500) for
2009, including 86,400 francs in cash, with the Swiss bank
saying it was leading attempts to "strike the right balance" on
Credit Suisse will pay 6.85 billion francs in bonuses for
2009, up from 2008's depressed payouts but a fifth down from
average pay in 2007.
It said 4.1 billion francs, or 60 percent of the pool, will
be paid in cash, with the remaining 2.7 billion deferred over
several years and roughly split between shares and cash.
That works out at 144,000 francs on average for each of its
47,600 staff, down from 180,000 francs in 2007. It did not say
how much it paid in bonuses in 2008, when payouts were lower
amid the financial crisis.
Total compensation in 2009 was 14.9 billion francs, up 13
percent from 2008. The bank on Thursday reported a 6.7 billion
franc annual profit. [ID:nLDE61926D]
Banks in Europe and the United States are coming under
intense scrutiny on bonuses. Politicians, backed by an angry
public, have vowed to clamp down on bumper payouts so soon after
many banks were bailed out with taxpayer cash.
Credit Suisse said it was leading reform and transparency,
in line with G20 guidelines on banking pay.
"We have tried to strike the right balance between paying
our employees competitively, doing what is right for our
shareholders and responding appropriately to regulatory
initiatives as well as political and public concerns," Brady
Dougan, chief executive, said in a statement.
"We recognize the need for institutions in our industry to
change the way people are rewarded and incentivized."
Credit Suisse said its 2009 compensation to revenue ratio in
investment banking was at the historically low level of 41
All bonuses for Credit Suisse's executive board members for
2009 were deferred and nearly 60 percent of bonuses for managing
directors was deferred, and could be subject to clawback if
targets are missed.
Many banks have said they will raise fixed salaries and pay
a higher proportion of bonuses in stock over several years.
Rival UBS UBSN.VX(UBS.N) is paying about 2.9 billion Swiss
francs ($2.7 billion) in cash bonuses for 2009, up 34 percent
from depressed payouts a year earlier. It did not say how much
it would pay in deferred share awards. [ID:nLDE6180N3]
Deutsche Bank (DBKGn.DE) said last week it paid 11.3 billion
euros in compensation last year, up 18 percent on 2008.
U.S. bank Goldman Sachs (GS.N) has been at the centre of the
bonus storm and paid an average of $498,000 to each employee for
2009, which it said showed "restraint" after a backlash.
Credit Suisse said any charge to pay a UK tax on bankers'
bonuses would be made in 2010, as the levy has not been
finalised yet. It plans to cut its global bonus pool by 5
percent to pay the tax, and would cut bonuses for its top 400
managers in Britain by a further 30 percent. [ID:nLDE60I1I4]
(Reporting by Steve Slater; editing by John Stonestreet)