In the spring of 2007, a few months before the onset of the global financial crisis, Credit Suisse (CS) was at its peak: the cost of shares was more than 90 francs, the company’s market value was almost 100 billion francs – and appointed investment banker Brady Dougan (63) to the CEO.
CS recovered relatively well from the crisis that resulted in the collapse of major US bank Lehman Brothers. But much has not fit together in the traditional company since then: investment banking, the heart of global casino capitalism, has been expanded by senior management. From now on, the big bank has just gone downhill. The stock is currently worth around four francs, while CS is only worth ten billion francs.
About 1.6 billion for the board of directors
This week, the bank’s new top management announced a radical treatment. But the old management team, which caused a fiasco with strategic mistakes, has already left the mountains. And he’s swimming with the money he got from CS.
Calculations by SonntagsBlick show that between 2007 and 2021, members of the CS Board and Executive Committee received salaries and bonuses of approximately 1.6 billion francs. Former CEOs Brady Dougan (2007-2015, 160 million) and Tidjane Thiam (2015-2020, 90 million) and long-time Chairman Urs Rohner (2011-2021, 50 million) CS approximately 300 million transfer francs.
“Those who have taken risks should be responsible for the risks.”
Michael von Felten, President of the Swiss Bank Employees Association, finds this shocking. In particular, he criticizes that none of the old leadership takes responsibility. “This fact will burden the bank for a long time,” says von Felten. “For a really fresh start, it would help if Urs Rohner, for example, would stand there and say, ‘I made a mistake and I’m going to pay back some of my compensation.
Marc Chesney (63), a professor of finance at the University of Zurich, criticizes the invalidation of the fundamental principle of liberalism in the CS example: “Those who take risks must be responsible for the risks. However, in the Credit Suisse case, which is still ‘too big to fail’, the taxpayers are responsible, not the management.” Chesney concludes: “As a result, taxpayers must also be represented on the CS board.”
CS does not require any action regarding management fees.
Upon request, CS states that internal regulations are “regularly reviewed and amended as necessary.” However, the bank does not see any need for action at this time: “Management pay reflects multiple factors and must also be considered in the context of markets, other external conditions and company performance,” said a spokesperson.