Federal government order shows that the CS bonus system was much more complex than known

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Bonus overruns at Credit Suisse have not only been a major nuisance since the bank’s bankruptcy. Now, it’s becoming more and more evident how sophisticated the system that the carpet floor uses to access the bank’s safes is.

Because it didn’t work out that the Federal Council canceled most of the bonuses. Because this order only refers to obvious bonus payments. There were also hidden bonuses in Credit Suisse that were not affected by the decision of the Federal Council. Money and securities were also strangely distributed, as the “Sonntagszeitung” wrote. Because this can also be read in the order from the finance department.

The bottom line: the highest bonuses don’t need to be repaid, and the board members are fine, too. The payouts to some CS bankers in the US, who collect some kind of performance-related fee directly from investors in an asset-managed fund, give a lot to talk about within the bank. Since these – controversially – payments are not considered compensation in the “conventional sense”, they are not covered by the order of the Federal Council.

No refunds to the board

Sign-in bonuses are also unaffected by the decision, i.e. money senior executives receive when changing jobs if claims on the former employer are no longer valid. Some people are likely to take advantage of this, as many executives have joined hands on the bank’s management floor in recent years. The same applies to severance pay in cash, but such payments should no longer be made.

The board is also lucky: unlike former board members like Tidjane Thiam (60) or Thomas Gottstein (59), board members are explicitly excluded from the repayment order. This applies, for example, to Urs Rohner (63) or António Horta-Osório (59). (co)

Source :Blick