The calculation of ex-CEO Tidjane Thiams Bonus gives rise to discussions at the big bank. The Board of Directors of Credit Suisse is now apparently taking action.
The leadership of Credit Suisse (CS) apparently disagrees as to whether the way the bonus is for the outgoing CEO Tidjane Thiam calculated for 2019, accepted. Like the Swiss “Sunday newspaper” (Item payable) the bank argues about the bonus for the ex-CEO.
According to a bank spokesman, the Compensation Committee of the CS Board of Directors, which is responsible for wages, will decide what is included in the adjusted figures and what is not.
Adjusted profit in the spotlight
As well as finews.ch reported, the record profit presented last Thursday by the second largest bank in Switzerland was distorted by a special effect. The sale of real estate and the fund service platform Investlab and the revaluation of the stake in the stock exchange operator SIX brought the bank almost CHF 1 billion. Even back then, this timing caused frowns among observers.
Was it a last “trick” by Thiam, as the Sunday paper insinuated? Such effects are usually left out when calculating the bonuses – but the special effects were now largely included in the adjusted pre-tax profit of CHF 5 billion.
Influence on other key figures
The adjusted pre-tax profit is also relevant when calculating Thiams Bonus; the special effects also have an impact on the return on equity, another factor in the calculation of compensation. Last year Thiam’s bonus was CHF 9.5 million, with a fixed salary of CHF 3 million – a massive wage increase. In 2017, Thiam waived CHF 1.5 million of his bonus.
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