LONDON — Credit Suisse CEO Tidjane Thiam’s compensation package for 2016 totalled 11.90 million Swiss francs (£9.6 million, $US12 million), the bank’s annual report shows.
The report, published on Friday, shows Thiam earned a bonus of CHF 8.22 million (£6.66 million, $US8.2 million) on top of a CHF 3.68 million (£2.9 million, $US3.7 million) fixed compensation package. The bonus is a mixture of both short-term and long-term incentive schemes and CHF 6.13 million (£4.9 million, $US6.1 million) of Thiam’s bonus will be deferred.
The remuneration package represents a rise in take-home pay for Thiam, who was the highest paid executive last year. He joined Credit Suisse as CEO in June 2015 and earned CHF 4.57 million (£3.69 million, $US4.6 million) for the 6 months to the end of that year, which would have worked out at CHF 9.14 million (£7.3 million, $US9.2 million) for the year.
The rise comes despite a net loss of CHF 2.7 billion (£2.1 billion, $US2.7 billion) for Credit Suisse last year. The bank was hit by a $US5.3 billion (£4.2 billion) settlement with the US Department of Justice over allegations of misselling mortgage-backed securities in the run-up to the financial crisis.
Credit Suisse’s compensation committee says Thiam’s bonus award reflects his “significant achievement made in reducing the Group’s cost base, with net cost savings achieved in 2016 exceeding the target for the year.”
The committee adds that Thiam has “led the Group to a stronger capital position” and hailed his “sound leadership, careful and measured approach, and success in formulating and driving the Group towards one cohesive, client-centric bank, focused on profitable, sustainable and compliant growth.”
Credit Suisse’s total bonus pool rose to CHF 3.09 billion (£2.5 billion, $US3.1 billion) last year, up from CHF 2.92 billion (£2.3 billion, $US2.9 billion) in 2015. 43,412 employees across the group got a bonus last year, up from 43,225 in 2015.
The bank says in its report that the increase “reflected the impact of strategic hiring in high-growth business areas as well as necessary adjustments to certain divisional pools to align compensation levels with the market.”
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