Daily Management Review

Credit Suisse CEO gets $ 12 million for 2016


03/24/2017


Salary of Tidjane Thiam, Chief Executive Officer of Credit Suisse, grew to 11.9 million Swiss francs ($ 12 million) for the first year of his work, as journalists learned from annual report of the second largest bank in Switzerland.



Credit Suisse via flickr
Credit Suisse via flickr
Thiam took over as Executive Director in Credit Suisse in June 2015; his salary then was 4.57 million francs.

The report also says that the Credit Suisse bonus fund grew by 6% to 3.09 billion francs. At the same time, the Swiss bank is in the "red" for the second year in a row due to a major restructuring and rather serious penalties for selling "toxic" mortgage debts on the eve of the financial crisis.

"In general, the board of directors took into account strong leadership of Thiam, consistent execution of the group's strategy, efficiency in terms of profitability, basic and ethical behavior, and his role in moving the group to stronger positions on capital in determining how Thiam achieved his goals", the report says.

The main competitor of Credit Suisse, UBS Bank paid its CEO Sergio Ermotti 13.7 million francs for 2016 and reduced his bonus fund by 17% to 2.9 billion francs.

Zurich Bank Credit Suisse also stated that it reached a principled settlement in the case of residential mortgage-backed securities (RMBS) with the National Council for the Management of Credit Unions (NCUA) in the United States, increasing its net loss in 2016 from 2.44 Billion to 2.71 billion francs.

This shook the Common Equity Tier 1 (CET1) of the bank, a closely watched indicator of strength of the balance sheet, reducing it to 11.5% from 11.6%. The ratio of own and borrowed funds fell to 3.2% from 3.3%.

Credit Suisse repeated last month's comments that the bank continues to work on a minor IPO of its Swiss banking unit, through which it would raise 4 billion francs, amid reports that the bank is considering a possibility of a quick sale of shares, rather than holding a separate listing.

"We are on the way to the preparatory work for the planned partial initial public offering (IPO) of Credit Suisse (Schweiz) AG in the second half of 2017, when the market conditions and the board of directors allow this," wrote Thiam and Urs Rohner, the bank's chairman, in the report. 

source: fortune.com






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