Credit Suisse Group AG (CSGN), the second- biggest Swiss bank, cut total compensation for Chief Executive Officer Brady Dougan by 55 percent for 2011 after profit slumped 62 percent.
Dougan’s pay of 5.82 million Swiss francs ($6.37 million) included fixed salary of 2.5 million francs and 3 million francs in share awards, the Zurich-based bank said today in its annual report. The bank paid Dougan 12.8 million francs for 2010.
The highest-paid member on Credit Suisse’s executive board was asset-management head Robert Shafir with 8.5 million francs. Antonio Quintella, who heads the Americas region, was the top paid in 2010, with total compensation of 15.63 million francs.
Credit Suisse said last month that it cut the 2011 bonus pool by 41 percent after its securities unit posted a second consecutive quarterly loss, and reduced the average variable compensation for executive board members 57 percent. The bonus pool for the investment bank was cut 51 percent, Credit Suisse said today. The bank’s net income fell to 1.95 billion francs in 2011 from 5.1 billion francs the previous year.
The CEO’s compensation “reflects the lower financial performance compared to the prior year and the lower share price, and also recognizes Mr. Dougan’s contribution to the long-term execution of the strategy and positioning of the firm in a changing regulatory and industry environment,” the bank said in its annual report.
Credit Suisse shares fell 42 percent in 2011 in Zurich trading, outpacing the 32 percent decline by the Bloomberg Europe Banks Index (BEBANKS) in the same period.
UBS AG, the biggest Swiss bank, said earlier this month that it paid Sergio Ermotti, who joined the bank in April and took over as CEO after Oswald Gruebel resigned in September, 6.35 million francs. Deutsche Bank AG, Germany’s biggest lender, said this week that CEO Josef Ackermann was paid 6.3 million euros ($8.3 million).
The 13-member Credit Suisse executive board received total pay of 70.2 million francs, compared with 160.34 million francs paid to 16 individuals in 2010. Board members didn’t receive any cash bonuses and their variable compensation was fully deferred into future years and is subject to clawbacks, it said. Board members, except for Dougan, Chief Financial Officer David Mathers, Chief Risk Officer Tobias Guldimann and personnel chief Pamela Thomas-Graham, will also be getting bonuses in the form of bonds linked to derivatives.
Credit Suisse, which in 2008 awarded employees bonuses linked to a pool of toxic assets, paid out about 500 million francs in notes, named Partner Asset Facility 2, to more than 5,500 senior employees throughout the bank. The bonds were designed to help the bank cut risks and improve its capital position.
The bank said it would absorb the first $500 million of losses on the bonds, which will pay a coupon of 5 percent for franc holders and 6.5 percent in dollars for holders elsewhere.
Chairman Urs Rohner received total compensation of 4.33 million francs, the bank said. Credit Suisse also announced that Peter Weibel will step down from the board of directors at the annual shareholders’ meeting.
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