Credit Suisse Group AG Chairman Axel Lehmann is forgoing a payment of 1.5 million Swiss francs ($1.6 million) for his first full year on the job, as the bank reported its worst annual performance since the 2008 financial crisis.
(Bloomberg) — Credit Suisse Group AG Chairman Axel Lehmann is forgoing a payment of 1.5 million Swiss francs ($1.6 million) for his first full year on the job, as the bank reported its worst annual performance since the 2008 financial crisis.
Lehmann, who took up the role in January 2022, will not receive the standard fee that’s usually paid on top of board members’ salaries, according to the bank’s compensation report published Tuesday after a delay of several days due to a last-minute query by US regulators.
Lehmann was allocated compensation of 3 million francs for the period from April 2022 to April 2023, and plans to propose taking lower total pay of 3.8 million francs for the following pay period at the annual shareholder meeting. The bank is also planning to increase the portion of the chairman’s compensation that is paid in shares to 50% from 33%.
In waiving his fees, Lehmann mirrors executive-board members who are not receiving a bonus for last year when the lender suffered record outflows of client funds and a slump in its share price amid concerns over its restructuring plans. The bank cut its 2022 pool for all employees by about half, setting aside only 1 billion francs, down from 2 billion francs the prior year.
Securities and Exchange Commission officials had queried revisions Credit Suisse made to cash-flow statements related to the financial years 2019 and 2020, as well as related controls, the bank said last week. Credit Suisse didn’t directly explain whether the SEC’s concerns had been addressed, but said it had identified “material weaknesses” in the internal control of its financial reporting.
After a flood of departures, Credit Suisse is seeking to motivate senior staff while not angering shareholders and regulators. The bank disclosed it will make another substantial loss this year and is in the middle of a complicated restructuring that includes carving out its investment bank and selling off businesses that don’t connect with its key wealth unit. It is also reducing costs by cutting 9,000 jobs.
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