Credit Suisse set to roll out new retention bonuses for UK dealmakers

Credit Suisse is set to extend retention bonuses to a select band of senior dealmakers in London in a bid to stem defections as it embarks on a fresh cost-cutting programme.

The Swiss bank will pay dealmakers in Europe and the UK additional bonuses in the coming weeks, according to people familiar with the matter, after irking bankers in the region by only offering the payouts to employees in the US and Asia.

The bonuses are expected to be more targeted than Credit Suisse’s previous round in 2021, when it offered cash and stock awards to vest over three years as long as employees stayed at the firm.

The bank has hired over 70 senior dealmakers globally over the past year, but rivals have continued to poach key staff as Credit Suisse battles successive crises.

READ Credit Suisse bankers say they want out: ‘More people than ever’ looking to exit

Credit Suisse paid out CHF289m ($295m) to retain key employees within its investment bank, it disclosed in its second quarter financial report. The awards will vest over a three-year period.

Meanwhile, it spent CHF207m in the three months to the end of June on “deferred fixed cash compensation” that will vest over the next three years. The awards were only available to “certain employees in Asia and the Americas”.

Staff told FN in August that rolling out retention bonuses only in the US and Asia had caused internal friction at the bank.

“It was already selective, which was annoying. But now they’re only being directed towards the markets it is looking to grow,” one London-based dealmaker said.

Credit Suisse is preparing a fresh overhaul of its business under new chief executive, Ulrich Körner, which is expected to result in thousands of job cuts and a shake-up of its investment bank.

The Swiss bank has drawn up plans to split the unit into three, the Financial Timesreported, including a new ‘bad bank’ to hive off unwanted assets and non-core business lines.

Its advisory unit, which remains a key focus, is also likely to be separated.

To contact the author of this story with feedback or news, email Paul Clarke

Leave a Comment