Credit Suisse execs set for bonus payout: Report | india | Hindustan Times
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Credit Suisse execs set for bonus payout: Report

Nearly 300 bankers and executives at Swiss banking major Credit Suisse are poised to share an estimated 1.9 billion Swiss francs ($ 1.85 billion) in stock as part of performance-based retention plan, says a media report.

india Updated: Sep 25, 2009 13:21 IST

Nearly 300 bankers and executives at Swiss banking major Credit Suisse are poised to share an estimated 1.9 billion Swiss francs ($ 1.85 billion) in stock as part of performance-based retention plan, says a media report.

"About 300 Credit Suisse bankers and executives stand to share an estimated 1.9 billion Swiss francs ($ 1.85 billion) in stock next spring under a performance-based retention plan instituted nearly five years ago as the bank struggled to retain staff," The Financial Times has reported.

Eligible Credit Suisse managing directors and executives were paid one-fifth to one-half of the bonuses they received in early 2005 in "performance incentive plan" awards rather than in cash, it added.

The awards are due to vest in late March. As per the daily's estimates, since the bank has hit performance and share price targets, the plan participants could receive about 2.76 shares in Credit Suisse for each unit they were awarded.

"The ultimate amount paid out, if any, will not be clear until late March and will depend on the bank’s earnings and share price. If Credit Suisse’s average share price for the first three months of 2010 drops below 30 Swiss francs, employees will receive nothing," the daily said.

According to the report, Credit Suisse's plan incorporates many of the elements that banking compensation critics have been advocating – "long-term, share-based compensation that can be 'clawed back' for under performance".