Credit Suisse cuts chief executive's pay by 55%

CREDIT SUISSE, the second-biggest Swiss bank, has cut total compensation to its chief executive by 55 per cent last year after a profit slump of 62 per cent.

Brady Dougan’s pay of 5.82 million Swiss francs (€4.82 million) included a fixed salary of SFr2.5 million and SFr3 million in share awards, the bank said yesterday in its annual report. The bank paid Mr Dougan SFr12.8 million (€10.6 million) for 2010.

The highest-paid member on Credit Suisse’s executive board was asset-management head Robert Shafir with SFr8.5 million (€7.05 million).

Antonio Quintella, who heads the Americas region, was the top paid in 2010, with total compensation of SFr15.63 million (€12.8 million).

Credit Suisse said last month that it cut the 2011 bonus pool by 41 per cent after its securities unit posted a second consecutive quarterly loss, and reduced the average variable compensation for executive board members 57 per cent.

The bonus pool for the investment bank was cut by 51 per cent, Credit Suisse said yesterday.

The bank’s net income fell to SFr1.95 billion in 2011 from SFr5.1 billion the previous year.

The chief executive’s package “reflects the lower financial performance compared to the prior year and the lower share price, and also recognises 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 report said.

Credit Suisse shares fell 42 per cent in 2011 in Zurich trading, outpacing the 32 per cent decline by the Bloomberg Europe Banks Index in the same period.

UBS, the biggest Swiss bank, said earlier this month it paid Sergio Ermotti, who joined the bank in April and took over as chief executive after Oswald Grübel resigned in September, SFr6.35 million (€5.26 million).

Deutsche Bank, Germany’s biggest lender, said this week that chief executive Josef Ackermann was paid €6.3 million.

The 13-member Credit Suisse executive board received total pay of SFr70.2 million (€58.2 million), compared with SFr160.34 million (€133 million) paid to 16 individuals in 2010. Board members did not receive any cash bonuses, it said. – (Bloomberg)