* Pay for Brady Dougan up one third to 7.77 mln Sfr
* Robert Shafir is top earner with 10.59 mln Sfr
* Chairman Rohner sees pay rise one third to 5.23 mln Sfr
* UBS's CEO Ermotti earned 8.87 mln Sfr in 2012
By Katharina Bart
ZURICH, March 22 Credit Suisse raised
the pay of its chief executive by a third in 2012, a move likely
to stoke public and political anger over banker pay after a year
in which the Swiss group's profits fell and its shares stalled.
Brady Dougan, leading a drive to reduce risky assets,
improve capital levels and cut costs, received 7.8 million Swiss
francs ($8.2 million) last year, the bank said in its annual
report published on Friday.
Anger at pay levels has already driven Swiss voters to back
some of the world's strictest controls on executive pay, forcing
public companies to give shareholders a binding vote on
European officials, emboldened by a victory to cap banker
bonuses, are expected to follow suit.
Credit Suisse's local banking rival UBS, which was
bailed out by the Swiss government nearly five years ago, drew
fire last week when it disclosed a near $9 million 2012 payout
for chief executive Sergio Ermotti and a $26 million welcome
package for its new investment bank chief.
Credit Suisse said on Friday Chairman Urs Rohner's pay also
rose by one third to 5.2 million francs, while its top earner
for the second year running was Robert Shafir, who was promoted
to co-head of the newly merged private bank and asset management
unit in November.
Shafir's overall pay was 10.6 million francs, up from 8.5
million in 2011. Shafir is also head of the Americas for Credit
The bank's pay committee said the rewards were justified for
the progress made in restructuring the business.
However Brigitta Moser-Harder, an outspoken retail
shareholder of UBS and Credit Suisse who successfully campaigned
for the Swiss pay curbs, condemned the rewards for Dougan,
Shafir and Rohner amid a drop in Credit Suisse's profits.
"The questionable argumentation that the three did their
jobs very well shows once again that it's not effective
performance that is measured," she told Reuters.
Credit Suisse's net profit fell 24 percent to 1.48 billion
Swiss francs last year and the bank kept its mostly stock
REFORMS AND REWARDS
Banks are generally taking a harder line on executive pay.
Deutsche Bank docked the pay of co-chief
executives Anshu Jain and Juergen Fitschen, for example, after
it was forced to restate earnings due to additional, unexpected
legal provisions. Jain and Fitschen earned 4.8 million euros
($6.2 million) each in 2012.
U.S. rival JPMorgan Chase, meantime, halved the
bonus of chief executive Jamie Dimon after the bank suffered
huge trading losses. His overall pay was $11.5 million last
Credit Suisse has also pledged to cap the bonus pool for its
nine-person top management team at 2.5 percent of underlying net
profit. Top management earned 74.1 million as a group in 2012,
or roughly 2.1 percent of the profits.
"The wake-up call of the Swiss pay vote and the financial
crisis has heightened awareness on boards that excesses, in
particular in banking, cannot happen anymore," said Axel May,
consultant with Zurich-based compensation advisory firm
Hostettler, Kramarsch & Partner.
However, the rewards are still handsome and it is unclear
whether the reforms taken so far will mollify public anger.
The head of Barclays' investment bank, Rich Ricci,
this week sold more than 17 million pounds ($25.8 million) in
shares he received in a long-term pay deal.
Dougan's pay package included a 500,000 franc unrestricted
cash bonus and 2.5 million in base pay, as well as short- and
long-term stock awards.
The chief executive sparked a storm of criticism in 2010
when he received about 70 million francs in shares from a 2004
stock-linked bonus plan and was awarded 19 million for 2009.
Part of Shafir's pay was a 1.87-million-franc share in the
bank's private equity and hedge funds, meant to tie his
interests with those of a wider asset management restructuring.
Shafir, who was granted a stake in alternative investment
funds in 2008, could be set for awards of $10 million if the
funds achieve certain returns over their lifetime of up to
fifteen years, according to footnotes in the annual report.