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Credit Suisse had its investor day last week. As soon as it was over, the bank landed on the dock. He is said to have systematically laundered the Bulgarian cocaine money.
Now comes the calculation, for the team and its leaders. Bonuses for 2020 would be lower than last year, according to CEO Thomas Gottstein in the Financial Times.
“It is too early to say, but in general you have to expect the bonuses to decrease compared to last year,” says Gottstein gegenüber dem Wirtschaftsblatt.
“(T) this is part of our solidarity and social responsibility,” said the head of CS. The entire financial industry faces the same challenge.
Solidarity and responsibility: It is not clear what Gottstein means by this. Perhaps: if everyone is worse, the bankers will also have to give up part of their bonus.
CS has thousands of key risk takers who make a million or more a year. Now their number should decrease if the CS boss really cuts the bonuses.
Still, risk takers continue to be among the highest paid. The same as the members of the Executive Committee. They gave up part of their compensation in 2020 due to Corona.
Simple employees and team leaders will feel most of the downward bonus. The variable part of their pay has been falling for years.
10,000 francs in addition to the fixed salary is very widespread, nothing more. It is not known whether Gottstein sets a lower limit for the bonus cut.
If you don’t, then relative to total income, the lowest income CS people will come to the box the most.
Gottstein’s reasoning that the entire industry is assuming that bonuses go down doesn’t sound convincing. So far, none of that has been leaked on UBS.
Gottstein’s problem is the many “explosions” at CS since the Swiss took over the CEO tax in February.
CS made headlines surrounding the collapse of Wirecard in Germany and Luckin Coffee in Asia.
After that, the bank had to distance itself from the Japanese Softbank on asset management. Recently, CS announced a write-off of $ 450 million in a New York hedge fund.
On top of that, another court copyist threatens because of an old American charge from the subprime era 12 years ago.
The worst are the credit losses due to Corona and the economic crisis. The CS had to make high provisions for outstanding debts, its provision for possible bad loans puts those of UBS in the shadow.
The fourth quarter threatens to end with a net loss. CS lags behind, its actions continue to lag behind the competition.
Gottstein said in the Financial Times that he wanted to approach 2021 with a “clean table.” Almost in passing, he mentioned diminishing bonuses.
And he called his 50,000 colleagues: Sorry, friends, it will be less this year. A Christmas present that nobody loves on the bench.
