Credit Suisse Employee Bonuses Tied to AT1 Bonds Also Wiped Out
- Staff told that contingent capital awards will be zeroed
- Awards had value of about 360 million francs at end of 2022
The Credit Suisse Group AG office tower in Zurich, Switzerland.
Photographer: Francesca Volpi/BloombergThis article is for subscribers only.
Credit Suisse Group AG informed employees that deferred awards meant to mirror bonds that were wiped out in the firm’s emergency sale to UBS Group AG will also be written to zero.
The move, described by people briefed on the decision, erases so-called contingent capital awards that had been worth 360 million Swiss francs ($403 million) at the end of 2022. That adds to the pay pain for senior bankers that have seen share awards plummet in value and some bonuses cut or canceled by government decree.