Credit Suisse is delaying compensation day for some of its bankers

CREDIT Suisse Group is delaying a much-anticipated compensation day for some of its bankers, further straining its relationship with employees as it restructures its Wall Street operations, according to people familiar with the matter.

The bankers — mainly at managing director or director level — were notified on Monday (Feb 6) that meetings set for Tuesday Feb 7 have been cancelled, pushing back conversations on bonuses, said the people, who requested anonymity discussing confidential information. The discussions may be rescheduled in the coming weeks, the people said. The bonuses are typically paid at the end of the month.

A spokesperson for Credit Suisse declined to comment.

Staff inside Credit Suisse’s investment-banking arm have contended with uncertainty amid the Zurich-based lender’s plans to merge those operations with rainmaker Michael Klein’s advisory boutique. The combination is supposed to form a First Boston unit that will eventually be spun out. Credit Suisse said in October it received a commitment for a US$500 million injection into the business but hasn’t identified that investor.

Credit Suisse, seeking to draw a line under years of losses and scandals, has said it would carve out its dealmaking businesses under the storied First Boston brand and tapped Klein to try to return them to their former glory.

Any delays in bonus payments would be painful ahead of tax season, where bankers often use portions of the reward to cover those bills. It could also adversely impact the younger directors, who are likely to have more onerous mortgage burdens than their more tenured peers. BLOOMBERG