Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, said bankers chose to convert about 50 percent of their future payments from a bonus plan for shares in the lender.
The swap will increase common equity by 550 million Swiss francs ($561.6 million) this year, the Zurich-based bank said in an e-mailed statement today. While that was below the targeted 750 million-franc capital boost, the shortfall was more than compensated for by a higher benefit achieved from the repurchase of 4.8 billion francs in bonds.
Together the two measures will boost common equity by 930 million francs this year, exceeding the 800 million-franc target, the bank said. The swap and repurchase of bonds were among the measures Credit Suisse announced last month to increase capital by about 15.3 billion francs to appease regulators.
Employees could choose to convert so-called Adjustable Performance Plan Awards, given as part of bonuses for 2009 and 2010, for stock at 16.29 francs a share. The Adjustable Performance Plan Awards were a cash-based deferred compensation plan, with payouts linked to the financial performance of the employees’ business areas and the company’s return on equity.
Credit Suisse Chief Executive Officer Brady Dougan said last month the bank’s executive board would participate in the exchange with all of its awards.
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