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Credit Suisse reviews management compensation after overhaul
[ZURICH] Credit Suisse Group AG is reviewing its pay structure for 12 top executives after scrapping profitability targets under a strategy introduced by new Chief Executive Officer Tidjane Thiam.
As part of the overhaul announced last month, Credit Suisse named six new members to its executive board, while four stepped down. It also scrapped return-on-equity and cost-to-income ratios as targets. The bank had used both measures to evaluate the performance of executive board members.
"As a result of the comprehensive changes in our strategic direction and organizational structure announced on October 21, 2015, including management changes, the 2015 compensation structure is under consideration," Credit Suisse said in a prospectus to shareholders Monday.
Credit Suisse is seeking to raise about 6 billion francs (S$8.4 billion) in equity to fund the new strategy and cover increased regulatory demands for capital. The bank projects 1.3 billion francs in restructuring costs.
Switzerland's second-biggest bank after UBS Group AG is betting on growth in Asia, eastern Europe and other emerging markets, where it plans to build up its business of managing money for the rich.
Shareholders in April agreed to raise the CEO's yearly salary to 3 million francs from 2.5 million francs. Executive board members based in Switzerland will receive 2 million francs, up from 1.5 million francs for 2014, while those outside in the UK and the US will receive $2 million.