Who dares to cut the bonuses of investment bankers last year? No it seems Barclays. Nor, it seems, Credit Suisse. Despite broader problems at both banks, their investment bankers and traders appear to have been taken care of.
Credit Suisse has yet to release a detailed compensation report for 2020, but today’s report results show that the employees of the investment bank were the only ones to receive a higher remuneration on average last year. In all other divisions of Credit Suisse, salaries have fallen.
After all, Credit Suisse’s decision to reward its investment banking employees follows suggestions that new CEO Thomas Gottstein would be cut bonus up to 10% for “solidarity and social responsibility”. about 7% but investment bankers and traders were spared.
Was it deserved? Yes, as the net profits of the investment bank rose 61% last year, while the profits of all other divisions of Credit Suisse fell. However, Credit Suisse bankers and merchants still generated lower net profits per capita last year than other divisions (eg 94,000 FCH per capita versus 159,000 FCH per capita in the universal bank). In a year where the bank as a whole was challenged, one would have expected them to share some of the pain. – However, it was clearly seen as too risky when well-paid US banks sit on the sidelines to poach top staff.
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