Credit Suisse Group, the Swiss bank that lost
The bank has offered multiyear guarantees to keep some managing directors within its investment banking and capital markets group, according to people with knowledge of the matter. In at least one instance, the Zurich-based lender agreed to award a senior U.S. financial sponsors banker a compensation package worth roughly $10 million or more, split across two years, after he received a competing offer, said some of the people, who asked not to be identified discussing compensation.
The banker’s group covers fee-generative private equity firms such as Carlyle Group, which tapped Credit Suisse for advice on its sale of a
Candice Sun, a Credit Suisse spokeswoman, declined to comment.
Thanks to the bidding wars, some of Credit Suisse’s retained rainmakers are poised to out-earn Chief Executive Officer Thomas Gottstein, who received 3.8 million Swiss francs ($3.9 million) in 2021. That figure was curbed by the impact of Archegos Capital Management on the bank’s short-term compensation and Credit Suisse’s decision to cancel its long-term incentive plan.
The counteroffers show there’s continuing pressure on the bank to pay up for its top talent even as it seeks to cut costs in other areas to help results. Credit Suisse last month told investors to expect a third straight
And the competition for the senior bankers comes despite a decline in dealmaking activity and fees, which may translate into
Credit Suisse last year selectively offered retention payments to senior investment bankers. It
More than 60 rainmakers have
Compensation traditionally includes stock, and Credit Suisse’s shares have been steadily declining. The bank’s shares are trading near record lows, at 5.16 Swiss francs.
— With assistance from Myriam Balezou and Marion Halftermeyer.
