Credit Suisse CEO Asks Board to Cut His Bonus After Weak Results
February 07 2016 - 8:30PM
Dow Jones News
LONDON—The CEO of Credit Suisse Group AG has asked his board to
slash his bonus, after the Swiss bank posted quarterly results that
sent its share price tumbling lower.
"I have asked the board of directors for a significant reduction
in my bonus," said Tidjane Thiam, who took over as chief executive
in July and has sought to commence a revamp of Credit Suisse amid
challenging conditions.
Mr. Thiam said his bonus "has been substantially reduced,"
though he didn't elaborate. He added that, "the board of directors
explained to me at the same time that people are happy with my
work."
On Thursday, Zurich-based Credit Suisse reported a
larger-than-anticipated fourth-quarter loss of 5.8 billion Swiss
francs ($5.8 billion), as the bank absorbed a massive impairment
charge tied to its contracting investment bank, suffered outflows
in wealth management units, and posted downbeat investment banking
numbers.
Shares of Credit Suisse fell 11%, as the bank coupled its
results with news that it is ramping up cost-cutting measures, and
saw its business targets for 2018 questioned. Mr. Thiam laid out
his strategic plans for the bank in October.
Credit Suisse's results underlined the broader difficulties
facing European banks, due to turbulent markets, tighter
regulation, and low interest rates.
Deutsche Bank AG also recently reported a fourth-quarter loss,
and the German bank's supervisory board has voted to deny 2015
bonuses for the lender's management board, including new co-CEO
John Cryan.
Mr. Thiam originally made his remarks about his bonus cut to the
Swiss media.
Mr. Thiam has said previously that Credit Suisse plans an 11%
reduction to its overall bonus pool for 2015.
Mr. Thiam added in his latest remarks that his fellow executives
will also have their bonuses cut. "Within the management team, the
cut is greatest in my case," the CEO said. "I cannot demand
sacrifices from others and not make any myself."
Write to John Letzing at john.letzing@wsj.com
(END) Dow Jones Newswires
February 07, 2016 20:15 ET (01:15 GMT)
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