Major Bank Credit Suisse is adjusting its pay system after it recently incurred billions of dollars in losses in its Greensill and Archegos funds. This is what Chairman Antonio Horta Osorio (57) and CEO Thomas Gottstein (57) said in an interview with “NZZ am Sonntag”.
The Bank will structure the variable remuneration in such a way that there is no incentive to take excessive risk. For this reason, Credit Suisse is in the process of adapting the compensation model. Wages will be more closely linked to risks incurred and economic gains.
If the business is capital intensive and therefore profitable, managers are not rewarded with higher bonuses. According to CSOs, details of the new reward system will not be provided until the first half of 2022.
500 new client advisors by 2024
Horta-Osório and Gottstein also announced that the bank’s reorganization would lead to significant structural changes. CS is shifting CHF3 billion of its capital from risky investment banking to wealth management. This is an increase of about 25 percent. The bank aims to hire a total of 500 new client advisors by 2024.
In the past few months, CS has examined various measures and came to the conclusion that this strategy can produce the best returns in the medium term – especially in terms of the risks taken, which CS will reduce significantly. (SDA/cny)
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