His radical three-year overhaul of Credit Suisse ends this year, but Tidjane Thiam says he likes his job – and wants shareholders to feel it.
If Tidjane Thiam was irritated about posting his third consecutive annual net loss last month, he seems to have gotten over it: «I thoroughly enjoy living in Switzerland, the country is beautiful and I feel well settled,» the Credit Suisse boss told Swiss business paper «Finanz und Wirtschaft» (behind paywall, in German).
The rare interview comes one week before the Zurich-based bank unveils his pay most recent paycheck, after Thiam and top management were forced to back down in a pay snafu last spring.
«It is a privilege to be at the helm of Credit Suisse – I am here to stay,» Thiam said, countering speculation that he is casting around for his next gig elsewhere after concluding a radical three-year restructuring at the end of this year.
Buybacks > Dividends
Thiam wants to make sure Credit Suisse's shareholders, who haven't always fared well in recent years, share the spoils of his work. He prefers share buybacks over outright dividend payouts, saying the former allows the bank greater flexibility as well as «reduce some of the dilution» from two cash calls totaling 10 billion Swiss francs in the last three years.
He also has another surprise in store for investors: Credit Suisse will call two contingent convertible bond instruments, or cocos, when they are due this autumn, as finews.com reported last year. The move will save the bank 250 million Swiss francs annually.
And, «The market value of the company has risen and it is now above when I arrived,» the bank boss emphasizes.
Delicate Bonus Debate
The dulcet tones come as Credit Suisse prepares to explain to investors why it is paying bonuses to top management despite posting a net loss for the year. Thiam concedes pay is «an extremely difficult subject,» but emphasizes that the bank pays for performance.
«Those who perform well should be rewarded. When it comes to the compensation of top management, it is up to the board of directors to decide on that matter. I do not want to comment ahead of its decision which will be announced by the board in due course,» he said.
