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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

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Share Price: 202.35
Bid: 202.15
Ask: 202.25
Change: 1.35 (0.67%)
Spread: 0.10 (0.049%)
Open: 202.50
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Low: 199.58
Prev. Close: 201.00
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CORRECTED-Pay spotlight turns to Credit Suisse's Dougan

Thu, 21st Mar 2013 18:01

(Corrects pay figures in paragraphs 15 and 17)

* CEO Brady Dougan earned 5.8 mln Sfr in 2011

* Unit head Shafir was bank's top earner in 2011

* Credit Suisse net profit down 24 pct in 2012, stock up 1pct

* Bank shed 2,300 staff in 2012

* Rival UBS criticised over CEO, investment bank head's pay

By Katharina Bart

ZURICH, March 21 (Reuters) - Credit Suisse placesbanker bonuses back under the spotlight on Friday with detailsof the pay of Chief Executive Brady Dougan in 2012 when thebank's stock rose little more than 1 percent amid a cutback inrisk taking by its investment bank.

Pay for Dougan, as well as 2011's top earner Robert Shafir,then asset management boss, will be scrutinised after bonusesfor investment banking rivals including UBS angeredSwiss retail shareholders last week.

Top management pay remains a hot-button issue in Switzerlandnearly five years after UBS was bailed out by the Swissgovernment.

Earlier this month, Swiss voters backed some of the world'sstrictest controls on executive pay, forcing public companies togive shareholders a binding vote on compensation.[IDD:nL6N0BV1SQ]

European officials, emboldened by a victory over bankerbonuses, are also expected to propose legislation givingshareholders the right to challenge executive pay amid publicanger at Wall Street-style excess in the boardrooms.

Credit Suisse's U.S. rival JPMorgan Chase halved thebonus of CEO Jamie Dimon after the bank's board decided heshould shoulder blame for $6.2 billion of "London Whale" tradinglosses. His overall pay was $11.5 million lastyear.

Goldman Sachs Group Inc has not yet disclosed CEOLloyd Blankfein's compensation, which increased sharply to $16.2million in 2011 despite a slide in profits and share price.

Last week, UBS said it will pay CEO Sergio Ermotti almost $9million and welcome its new investment bank chief with a $26million package.

The head of Barclays' investment bank, Rich Ricci,this week sold more than 17 million pounds in shares he receivedin a long-term pay deal.

The pay disclosure comes as Credit Suisse, which cut 2,300 jobs last year, adjusts riskier areas of its investmentbank to tougher Swiss capital rules.

While Credit Suisse has vowed to stick with fixed incomeareas from which UBS is withdrawing, it is shrinkingrisk-intensive areas. Credit Suisse has closed its correlationtrading desk and shrunk commodities and derivatives, itsinvestment banking co-head Gael de Boissard said in an interview this week.

Credit Suisse also wants to cut 4.4 billion francs in costsby the end of 2015, up from a previous 4 billion target, byfolding its asset management unit into its private bank and bymoving some jobs offshore.

The measures took their toll on Credit Suisse's profits. Netprofit dropped 24 percent in 2012, and the bank kept its mostlystock dividend unchanged.

Credit Suisse has pledged to return to a higher, all-cashdividend when it has bolstered its capital, planned formid-year, while UBS is targeting a 50 percent payout ratio from2015.

Dougan sparked a public outcry when in 2010 he receivedroughly 70 million francs in shares from a 2004 stock-linkedbonus plan, and was awarded 19 million Swiss francs for 2009,most of which was in the form of deferred shares and deferredcash.

He earned 5.8 million francs in 2011.

Shafir, promoted to co-head of the newly merged private bankand asset management unit in November, was Credit Suisse's topearner last year on 8.5 million francs. (Editing by David Cowell)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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