Credit Suisse Group AG is reviewing how it pays its bankers to better align their compensation with the interests of shareholders.
The Swiss lender should pay senior-ranking employees more of their remuneration in shares, with long deferral periods and scope for clawbacks, Chairman Antonio Horta-Osorio said, while speaking Thursday at a virtual Financial Times conference. It plans to submit the proposed changes at the bank’s annual meeting of shareholders in April.
Compensation should include more deferred pay to “make sure the consequences of decisions today” are fully evaluated, he said. Organizations also need the ability “to claw back that remuneration, not as a matter necessarily of guilt but as a matter of accountability.”
The new pay structure would take into consideration the cost of capital and measure staff across the bank on risk-management metrics.
“I do think that people in general, either in sports or in banking or any other field, they should be paid according to performance and they should be paid according to market conditions,” Horta-Osorio said.
Credit Suisse is seeking to move past a tumultuous year that saw it lose $5.5 billion in the blowup of family office Archegos Capital Management and have to unwind client funds that were managed with collapsed lender Greensill Capital. It presented a revamped strategy last month that announced its exit from the prime brokerage business and combining its disparate wealth units into a single global business.
The bank also plans to share additional performance indicators with investors, including net new money in investment management, at its full year results in February, Horta-Osorio said.
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