Credit Suisse CEO Tidjane Thiam to take massive bonus hit after catastrophic results

Following the announcement of a £1.65 billion loss in its annual report for 2015, Credit Suisse Group AG (ADR) (NYSE:CS), the largest foreign broker by market share across seven regions in the Asia Pacific region and 12th largest interbank FX dealer in the world by market share, had announced that it was set to cut […]

Following the announcement of a £1.65 billion loss in its annual report for 2015, Credit Suisse Group AG (ADR) (NYSE:CS), the largest foreign broker by market share across seven regions in the Asia Pacific region and 12th largest interbank FX dealer in the world by market share, had announced that it was set to cut 4,000 jobs and reduce bonuses for its investment banking executives by 36%, the bank’s CEO Tidjane Thiam prepares to take his share of the burden.

Mr. Thiam, who has led the firm during the year in which it made its first annual loss in 8 years, is preparing to forfeit part of his bonus by request, having divulged to Swiss news source Sonntagzeitung yesterday that the cut to his bonus would be the largest among the leadership team.

Mr. Thiam will still receive a bonus, however, despite the balance sheet of the firm over which he presides having a balance sheet which is further into the red than that of 2007, the last year in which the bank did not make profit.

During recent years, Credit Suisse has lost considerable market share among interbank FX dealers, having been the second largest FX dealer worldwide at the turn of the decade, whereas six years on, it languishes in 12th place in terms of global market share.

The extent to which Mr. Thiam’s bonus will be cut in terms of monetary value has not been disclosed, however another metric to bear in mind is the collapsing value of Credit Suisse stock, which today is down 0.39 points to CHF 14.56 today from CHF 15.4 yesterday.

Capture

Chart courtesy of Google Finance

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<