ZURICH Feb 18 Credit Suisse is
scrapping a scheme that linked bonuses to risky assets after the
plan clashed with capital regulations.
The 5,500 senior bankers who were offered the scheme in 2012
may now choose between two replacement plans, according to
extracts of a memo seen by Reuters on Tuesday.
The first is a seven-year programme linked to the
performance of a portfolio of positions Credit Suisse is
exiting. The second is contingent convertible (CoCo)
instruments, which are wiped out if the bank's capital falls
below a certain level.
Credit Suisse's strategy of paying its employees a portion
of bonuses in sometimes risky assets has not only proved
lucrative to some recipients, it has also helped cut its
exposure to $17 billion worth of loans and deals.
Credit Suisse has yet to disclose its total bonus pool.
Crosstown rival UBS increased its bonus pool by 28
percent to 3.2 billion Swiss francs from 2012, when awards were
cut after it had to pay out $1.5 billion to settle allegations
of manipulating benchmark interest rates.
(Reporting by Oliver Hirt; Writing by Alice Baghdjian; Editing
by Mark Potter)