The bank Credit Suisse increased bonuses by 6% in 2016 as further litigation costs ramped up full year losses to CHF2.7 billion ($2.7 billion). Chief Executive Tidjane Thiam received CHF11.9 million for his first full year in the role.
Switzerland’s second largest bank had to revise its earnings statement on Friday after settling a legal complaint from the National Credit Union Administration Board over the selling of mortgage-backed security loans in the United States. This resulted in an additional CHF272 million charge (after tax) for 2016.
At the same time, the bank revealed it had awarded CHF3.09 billion in bonuses last year – up 6% from 2015. The chief beneficiary was Thiam who was awarded a total CHF11.9 million in fixed pay (CHF3 million) and bonuses.
In 2015, Thiam took home CHF4.6 million for six months’ work having voluntarily waived a large chunk of his bonus. He also received a one-off payment of CHF14.3 million in 2015 to compensate for lost earnings he would have enjoyed had he stayed on at Prudential.
Credit Suisse shareholders will have a consultative vote on the bank’s 2016 compensation report at its annual general meeting on April 28. They will also have a binding vote on the pay for top executives and directors.
In 2016, top executives received an aggregate compensation of CHF82 million in fixed pay and bonuses while directors took home CHF11 million. Under-fire chairman Urs Rohner was awarded CHF4 million last year compared to CHF3.2 million in 2015.