CS Credit Suisse Group

By John Letzing 

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 Thiam originally made his remarks about his bonus cut to the Swiss media.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 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 15:01 ET (20:01 GMT)

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