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Credit Suisse Bonuses to Have Bonds That Can Be Wiped Out

Credit Suisse Group AG, the second-largest Swiss bank, is paying part of 2013 bonuses to top employees in bonds that can be wiped out if the firm fails to maintain enough capital.

About 20 percent of 2013 deferred pay for directors and managing directors will be granted in the form of debt known as contingent-capital securities, which lose value if the firm’s common equity ratio falls below 7 percent, according to a Jan. 21 staff memo obtained by Bloomberg News. A representative for Zurich-based Credit Suisse confirmed the memo’s contents.