Thomas Gottstein received a total amount of 3.8 million francs, cut by 43% compared to the 6.5 million received for 2020.
After a calamitous 2021, Credit Suisse has cut the compensation of its boss Thomas Gottstein and that of the general management. This reduction is explained by the Greensill and Archegos cases, this last scandal having cost several billions to the number two Swiss bank.
Thomas Gottstein received a total amount of 3.9 million francs, cut by 43% compared to the 6.5 million collected for 2020, according to the indications of the annual report published Thursday. The fixed salary remained stable at 2.9 million, while bonuses fell to 0.8 million, from 3.6 million the previous year. Mr. Gottstein took over as head of Credit Suisse in mid-February 2020.
By way of comparison, the number one Swiss bank UBS paid its boss Ralph Hamers a total salary of 11.5 million francs for the past financial year.
In the CEO’s assessment for 2021, the board points to the “reputational challenges” and negative financial impact of the debacle of US hedge fund Archegos, which cost the bank almost 5 billion francs, and of the Greensill funds scandal, named after the bankrupt British factoring company. These cases have led Credit Suisse to review its risk management and governance, the report recalls.
The 15 members of the general management saw their bonus drop to 8.6 million francs, while this sum – for 13 members – had reached 23.7 million in 2020. The total remuneration of the executive committee was thus reduced by 27 % to 38.6 million (52.7 million previously).
Fully reduced salaries
Credit Suisse experienced a veritable annus horriblis in 2021, a business year marked by a red iron. The Zurich banking giant suffered a loss of 1.57 billion francs, weighed down by losses linked to the Archegos scandal but also by significant value adjustments. Faced with the extent of the shortcomings observed and the damage to the group’s image, the board of directors had decided to crack down and reduce the bonuses of the management, but also of the executives.
In his message, the chairman of the remuneration committee and administrator Kai Nargolwala specifies that 23 people have been penalized in connection with the Archegos affair. The big bank decreed penalties and demanded repayments of up to 70 million dollars (65 million francs at the current price). For Greensill, 14 employees were affected for an amount of 43 million.
Mr Nargolwala says Credit Suisse has made “adjustments of up to 100% of deferred compensation” for those directly responsible for the aforementioned scandals.
Ephemeral president, António Horta-Osório received total compensation of 3.5 million francs for 2021. The Portuguese was elected at the end of April before resigning a few months later, in January, swept away by yet another controversy to put liabilities of Credit Suisse. The banker had breached coronavirus quarantine rules.
His successor Axel Lehmann received as a “simple” director an amount of 1.6 million francs. The board of directors saw its remuneration increase slightly to 11.7 million francs, compared to 11.1 million in 2020. Last year, the supervisory body had one more member compared to 2020.