Top Firm Said Cutting Bonus Pool For 4th Year in a Row

Bad Bonus Pool

Ouch!

As Goldman Sachs, Morgan Stanley, Citigroup, and Bank of America post earnings this week and 2012 compensation data is revealed, Reuters reports that Credit Suisse will cut its bonus pool for 2012 by 20% percent to around $2.52bn, the fourth year in a row the Swiss bank has slashed payouts, a newspaper reported on Sunday.

Citing unnamed sources, Der Sonntag newspaper said the 20,000 employees of Credit Suisse's investment bank were allocated significantly over $1.1bn, while the 14,000 staff of the private bank would get some $338m - $547m.

Credit Suisse is also said to be preparing to offload more risk exposure to staff in its 2012 bonus giveaway, but significantly fewer managers will be allowed to join the latest version of a scheme that has yielded stellar rewards in previous years.

Reuters has also reported that, pioneered in 2008, Credit Suisse's ground-breaking asset-backed bonus schemes pay managers a portion of their bonuses in financial instruments whose value depends on the performance of risky assets that the bank is exposed to.

Finally, Reuters reports that the majority of Swiss voters support a plan to impose some of the tightest limits in the world on 'fat cat' pay, a poll published on Sunday showed.

The poll, conducted by Isopublic for the Sonntags-Blick newspaper from Thursday to Saturday, showed that 54% of the 1,019 people surveyed back the plan, while 30% are opposed and 16% are still undecided.

Credit Suisse to cut bonus pool by 20 percent - paper

Credit Suisse plans new asset-backed bonus scheme

Majority of Swiss back "fat cat" pay curbs - poll

 

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