Credit Suisse Lowers Ex-CEO Thiam's Bonus -- WSJ
26 März 2020 - 8:02AM
Dow Jones News
By Margot Patrick
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 26, 2020).
Credit Suisse Group AG on Wednesday said it docked around 2.2
million Swiss francs ($2.24 million) from former chief executive
Tidjane Thiam's 2019 bonus because of the "significant impact" of
last year's spying scandal on the bank's reputation.
Mr. Thiam was granted 10.7 million francs in salary, bonus and
share awards in 2019, down from 12.6 million francs the year
before, the bank said. His bonus of 7.2 million francs, some of
which is paid out over time and whose value can fluctuate, could
have been at least 2.2 million francs higher according to a
compensation report by the bank Wednesday.
Pierre-Olivier Bouée, the bank's former chief operating officer
who Credit Suisse said was responsible for the surveillance of two
executives, lost shares worth around 4 million francs after being
fired in December, according to the report.
Credit Suisse made international headlines and its culture and
governance came under a spotlight after the bank's former
international wealth management head, Iqbal Khan, spotted and
confronted an investigator following him in the streets of Zurich
in September. The bank hired a law firm to review the surveillance,
and found Mr. Bouée had ordered it over fears Mr. Khan could take
staff or clients to his new employer, UBS Group AG. Mr. Bouée
resigned and initially kept earlier share awards, but was fired in
December when the bank found he had another top executive followed
earlier in 2019 but didn't disclose it during the Khan
investigation.
The bank said there is no evidence Mr. Thiam knew about either
surveillance, and Mr. Thiam has denied any knowledge. After being
forced to resign in February because of the fallout, Mr. Thiam said
he was leaving with a clear conscience.
Kai Nargolwala, chair of Credit Suisse's compensation committee,
said the board doesn't believe the events had any lasting impact on
shareholder value or client relationships, but "the level of media
scrutiny and the potential damage to our reputation was
concerning."
"Mr. Thiam has taken accountability for the events" and accepted
the bonus reduction, Mr. Nargolwala said.
In the report Wednesday, Mr. Nargolwala said independent
investigations confirmed that the events only involved "certain
isolated individuals," and indicated that Mr. Bouée's departure was
because he was "less than forthcoming" with investigators. Mr.
Bouée hasn't commented on the matter.
On Wednesday, Credit Suisse Chairman Urs Rohner confirmed he
will leave next year. In a letter to shareholders for the bank's
annual meeting in April, he said he wouldn't stand for re-election
at the 2021 meeting and that the process to find his successor "is
well under way."
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
March 26, 2020 02:47 ET (06:47 GMT)
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