In a move that could help boost retention in competitive Asian markets, top Asia bankers at Credit Suisse will have to return a part of the cash portion of their 2018 bonuses if they quit.
Managing directors of Credit Suisse in Asia who quit within three years of receiving their 2018 bonuses will have to pay back a part of the cash portion, «Bloomberg» reported, citing people with knowledge of the matter.
According to the publication, the cash bonuses, which will be disbursed in coming weeks, will have to be repaid almost in full if the recipient leaves the bank within one year, with the sum falling by one-third each year after that.
Tougher Rules in Asia
While the prospect of paying back cash is expected to stem defections, it is unclear why Credit Suisse has imposed the rules in Asia. In the U.S., senior investment bankers at Credit Suisse will see their deferred-compensation part of bonuses increased, bringing payout schedules closer to that of Europe.
In the past, bonuses of senior bankers at Credit Suisse comprised 25 to 30 percent in cash, with a little more than half in the form of stock vested over a few years, and the balance made up of a contingent-convertible debt instrument for equity or a coupon payment.
Frozen Bonus Pool
Earlier in February, «Financial Times» reported (behind paywall) that Credit Suisse will not increase its 2018 bonus pool, but award its top executives double-digit pay rises. The bank's overall pool of bonuses will remain unchanged from last year's 3.2 billion Swiss francs ($3.2 billion) as the board seeks to balance distributions to shareholders with pay for employees, the newspaper said.
