Credit Suisse paid its chairman nearly 24 percent more than last year, mostly in cash. The pay rise comes amid a drop of nearly one-third in the Swiss bank's share price last year.
The Zurich-based bank said it paid Urs Rohner, the chairman of its board, 3.98 million Swiss francs ($4 million) in the period from last year's annual general meeting through to the shareholder meeting next month.
Rohner has been criticized for his unwillingness to intervene in Credit Suisse's strategy, which clung to investment banking far longer than rivals such as UBS. Rohner himself, a Swiss lawyer, has proven Teflon-like to the criticism.
The bank is now scrambling to catch up, juggling options including a potential cash call from shareholders versus spinning off part of its valuable and reliably profitable Swiss business.
The chairman's salary, which is now disclosed from annual report to annual report instead of ordinary financial year, was paid largely – 81 percent – in cash, with another 750,000 francs paid in shares and «chair fees», each.
Mostly Cash
The ample cash portion and high overall pay relative to a year when the bank reported a deeply unprofitable year – its second in succession – raises questions over Rohner's stewardship and sets him up for a grilling when Credit Suisse reports to shareholders next month.
Since 2015, Rohner has hitched his fortunes to CEO Tidjane Thiam, who wasted little time in ramping down the Swiss bank's risk-taking, particularly in New York and London much to the anger of the powerful investment banking action.
Thiam took home 11.9 million Swiss francs last year, his first full year of employ at Credit Suisse, trailing the 13.7 million earned by Sergio Ermotti, who runs hometown rival UBS.
More to follow
