Credit Suisse Bonuses to Include Bonds Made From Derivatives

Credit Suisse Group AG plans to pay a portion of senior employees’ 2011 bonuses in bonds backed by derivatives, reviving a maneuver from 2008 that helped the firm dispose of risky assets while preserving the value for staff.

“We are trying to strike the right balance and align employees with shareholders,” Chief Executive Officer Brady Dougan wrote in a memo to staff. It’s “a risk transfer from the firm to employees.” Suzanne Fleming, a spokeswoman for Zurich-based Credit Suisse, confirmed the memo’s contents and declined to comment further.